What you see today in this article is extremely important to learn especially when at the top of a market that could be going off a cliff soon.

Maybe you have heard of Dollar-Cost Averaging and maybe you have not!

Everyone should be regularly reminded or taught the importance of Dollar-Cost Averaging.

Why?

Simply put, it is by far one of the best & easiest ways to benefit from a bear market.

Coming up with a trading plan that incorporates this will net you some really good times ahead.

Especially when you should be thinking long-term instead of short-term.

It sets you up for success in both Bullish and Bearish scenarios too!

This is an average that will have you begging for a bear market once you see exactly how it benefits you.

Wait no longer! 

We will see it today as this article is meant to show you a break down of how it works.

It's one thing to explain it, however, it's better when we can actually see the benefit.

Example 1:

Bear Market

Example 2:

Bullish Market

Using a made-up currency called exampleCoin (EXC) we can see how much EXC we gained by sticking to this plan.

As the market falls in the first example we end up with 186.77 EXC by the end of the month.

If instead, the market rises like in our second example we end up with only 72.89 EXC.

Now let's assume that after July the price of EXC goes back to the original price in July of $100 for 1 EXC.

If you were to sell all of your EXC for that original price the next month, how much would you make out of the $10,000 you invested?

• Bearish Example: Selling all 186.77 EXC for $100 per EXC equals $18,677.00
• Bullish Example: Selling all 72.78 EXC for $100 per EXC equals $7,278

I don't know about you but I would much rather take home $18,677 dollars than losing almost $3000 in a bull market

Now, what happens if the market stays sideways all month?

Well, there wouldn't be that much a difference in gains or losses!

Similar to if you were to just use your entire $10,000 in one lump sum.

If you buy $10,000 worth of EXC at $100 and then you sell it at $100 then, what was the point of buying it in the first place?

The same thing goes for a side-ways market!

Create Your Exit Plan!

Creating an Exit Plan is all that more important when you realize how easy Dollar-Cost Averaging is.

If you're new and not yet familiar with how to set up a successful stop-loss I have some great advice for you.

Create Exit Plans first!

It is all about Risk Management and if you're not clear about when or where to exit.

There is no reason why you should jump ahead of yourself.

You are only going to regret it later especially if you are buying while the market is going up.

Having an Exit Plan in a Bear Market isn't quite as important when you are new to trading.

Take it slow! 

Patience is key 😎

Meanwhile, if you find yourself profiting take the gain while you can and set it aside for when prices start to go down instead of up. 

Exit Plans are better to apply and easier to do in a Bull Market for newcomers.

Why? Well because the worst that can happen is you Exit a Bull Market too early or slightly too late but still make a gain of some sort!

If all of this still sounds confusing or frustrating that means you definitely need to start out with a plan.

Come up with a plan then apply it!

That means pick how much you want to spend, how many days you plan to trade, and what cryptocurrency you want to trade with.

Dollar-Day Averaging is the easiest most profitable plan for learning how to trade. 

Every single great trader still uses this strategy as it is the fundamental building block for making good trading decisions.

The best part about sticking to Dollar-Day Averaging is that it helps remove the emotional aspect of trading better than anything else.

This is because it forces you to not spend everything all at once and makes Bear markets more fun instead of dreadful!

Or should I say... profitable 🤑

As always stay safe, stay skeptical, and thank you greatly for reading! 

Respectfully,

Trevor Balthrop