I have a great teacher, hehe. Thank you IMZ for the lectures!
Have PM-ed you some further notes. It's impressive that you see the value of helping newcomers.
And 'averaging':
if a member has thoroughly analysed an established crypto, and is ready to commit some capital to mid- and long-term trading, then averaging is a valuable practice. It goes roughly like this (you have the notes):
One: you maintain a dual focus: cryptos overall and the crypto(s) you're trading.
Two: you trade according to your skills. For the less skilled, that's when the coin is 'flat' or gently rising (and I mean over months and months).
The wisest thing you can do is to not trade. Three: decide what your 'exchange-exposure risk' is -- that might be 0.1 Bitcoin or much more. And never let your total capital on that exchange get more than about ten percent over that mark --
NEVER!! And let me be clear here: this is an insight into surviving as a crypto geek/trader. For every Moon Lambo Guy you hear about, there were a hundred who lost their capital, and slunk away. So you are gonna make much less profit on the spikes ('cause you'll sell earlier, and never put too much coin on exchanges . . . ) But over time, you will thrive.
Four: as you puddle quietly along, withdraw amounts of both Bitcoin and 42. Remember, your Bitcoin is how you get 42 when the price is down! And mark the values of the 'packets' you withdraw.
Five: then, when/if the market drops out from under you, but you have a nice chunk of cheap 42 that you bought a year ago, you can calculate the average buy-in price:
10 Coin X at 10,000 sats each + 20 Coin X at 3,000 sats each = 30 Coin X at 5,333 each.
Suppose you just bought Coin X at 10,000
per. Then the market crashes to 5,300. You don't have any coin on the exchange that you can even sell at a break-even price. "
OMG OMG!! Panic panic!!" Nuh. You transfer the 20 on, and put the whole 30 up to sell at 5,334; sell 'em; get a chunk of Bitcoin; and keep trading.
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