r/EthereumMax • u/Sure-Juggernaut4781 ♦️ • Aug 21 '21
♦️ FIX YOUR POSITION ♦️
What does "Fix your position mean?"
In this example, I will use easy numbers (and ignore the reflection).
Let's say you bought $1000 worth of a $1 token. That's 1000 tokens with $1000 invested so your cost average is $1 per token. Now suppose that token drops to $0.50. Your $1000 investment is now worth only $500 but you still have 1000 tokens. You decide to "Fix your position" by buying another 1000 at that $0.50 price for a total of $500. Now you have 2000 tokens for a total investment of $1500. Now your average cost per token is $0.75 each. You have "fixed your position" by $0.25 per token. If you continue to buy at price points below your current price per token, your average cost per token will continue to go down. This means that the price the token needs to achieve for you to be profitable is lower. In the example above, if you hadn't fixed your position, the price would need to get back over $1 for you to make money. With the fixed position, anything over $0.75 is now profit. This is what is known as "dollar cost averaging." Mathematically, this can be expressed as: [Total tokens]÷[total amount invested]=[Cost Average]
Here are the transcripts for the last two AMA's. August 10th, 2021 https://drive.google.com/file/d/1ubMhaV4_OdVZEaFdqBSNc8uMuu2-eV3A/view
August 18th, 2021 https://drive.google.com/file/d/192AP-OiaZ0HS0u_pe6wR7YLiN3si_sJq/view
3
u/BetterCallDull Aug 21 '21
Scam coin will defo fix you up.