Ask Leo: Will the Martingale strategy ruin me?
The martingale strategy is a very famous way of operating in different markets including sports betting. It consists in investing or betting close to a certain amount of assets and if we incur a loss, we bet double that amount successively as we lose.
The Martingale has its defenders and opponents as any strategy. And the most generalized opinion is that as we double the previous investment we get closer to losing everything. In fact, according to some mathematical formulas in the end is guaranteed the liquidation of our resources or even if we have a good run as it could happen, our long-term profitability would be compromised.
Its advocates believe that in trading the Martin Gala strategy combined with good risk management will allow us to have profitability, but this requires discipline and optimal management of emotions.
In conclusion, there are several factors that make a strategy bear good fruit. In addition to the factors already mentioned, it is also necessary to be attentive to the fundamentals and technical analysis according to the trend. Actually by itself the Martingale strategy is a strategy that carries a high risk, you just have to think if the risk is worth it when compared with the benefits that we will get, so it is up to us to decide whether we run that risk or we are more conservative.
I hope you have a nice day and thanks for reading my post.
Sincerely: @jagy1983
Sometimes that strategy will work, but not if the destination of the price is ultimately zero.. Imagine using that strategy on something like LUNA? It's quite possible to be literally be throwing good money after bad.
I personally don't trust LEO ever since their hack, and after-which they just printed up tons of LEO out of thin air to "make everything better"
In my opinion it's always better stop buying something that is going down, and save up the cash to buy after (if) the trend changes. There is just so much LEO out there, I don't see how it will ever go up and stay. I got some LEO i'm holding so I can dump it if it ever does something, but I am not holding my breath.