Don’t Underestimate the Power of Averaging Down (Especially when it’s already down a lot)

Let's say you bought $100 worth of MATIC at $2. Then MATIC dropped to $1 and you bought $100 worth again.

What's your average now?

If you think it's $1.5, don't worry, you are not alone. I know 2 friends who said the same thing.

You have a total of 50 + 100 = 150 MATIC.

With a total investment of 200$, your average is 200/150 = $1.33

Now you only need to wait for it's price to go up 33% before breaking even.

This is indeed a basic math. But there are some people who legitimately fail with that.