Government taxes on Crypto could have been blessing in disguise
I think many Indian crypto investors accidentally got lucky due to TDS & Tax on Crypto announcement this budget in Feb. Activity & participation dropped significantly immediately. If not, many could have potentially been trapped trying to buy the dip & then averaging down.
Even when trading stocks, the biggest reason for losses is trying to make a wrong trade right by throwing good money at bad money. That is averaging down when the price moves against the trade, without considering if the portfolio is getting concentrated or not.
Whenever I have to explain this, I use the activity in Yes Bank in 2019 as an example. The stock price went down from Rs 400 to Rs 10 & with every fall new investors jumped in & many existing investors bought more. Had shared this back then.