𝑯𝒐𝒘 𝑰 𝑹𝒆𝒄𝒐𝒗𝒆𝒓𝒆𝒅 𝒂 𝑳𝒐𝒔𝒊𝒏𝒈 𝑻𝒓𝒂𝒅𝒆 𝒂𝒏𝒅 𝑻𝒖𝒓𝒏𝒆𝒅 𝑰𝒕 𝒊𝒏𝒕𝒐 𝑷𝒓𝒐𝒇𝒊𝒕
Let me walk you through a real trade and how I managed risk, reduced losses, and ultimately turned it into a profitable outcome.
I entered a long position on KIT/USDT using 15x leverage at a price of 0.17400 with a $100 position size.
This entry was based on a potential reversal zone between 0.165 and 0.175, which I identified as a strong support area.
However, the market moved against me.
For the first two days, the trade remained in a loss. On the third day, price made a pullback, briefly giving me a 40%–60% unrealized profit, but I chose not to close the position. Shortly after, the trend continued downward again.
Later, I noticed a possible reversal around 0.145, but I did not act on it, as I did not consider it a strong enough pullback. The price continued to decline further.
Eventually, I identified a stronger support zone around 0.1240–0.1250. At this point, I had not applied any scaling strategy, so my position remained unchanged from the original entry — resulting in a -282% unrealized loss.
𝐓𝐡𝐞 𝐓𝐮𝐫𝐧𝐢𝐧𝐠 𝐏𝐨𝐢𝐧𝐭 (𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐒𝐜𝐚𝐥𝐢𝐧𝐠)
This is where the strategy changed.
Instead of reacting emotionally, I defined a clear objective:
👉 “At what average price do I want to recover this trade?”
I decided my target average entry price should be 0.135.
Using proper calculations (assisted by Maxscal website), I determined that I needed to re-enter with $280.17 at 0.125 to bring my average down to the desired level.
I executed the scale-in accordingly.
𝐓𝐡𝐞 𝐑𝐞𝐬𝐮𝐥𝐭
With just the first scale-in, the position transformed from a -282% loss into approximately +70% profit, reaching around $281.61 in value.
