Watching the account balance drop, fingers unconsciously point to the add position button—how familiar is this thought?

"Lower the cost, the more it drops, the more you should buy."

This statement sounds very reasonable, but there is no shortage of people blowing up their accounts because of it.

A trader once told me that his first addition was just a small loss of a few thousand dollars. As a result, he executed the "buy more as it drops" plan three times, ultimately blowing up his account. Conversely, some people see a slight profit and start adding madly, turning a decent risk-reward ratio into cold sweat at 2 a.m.

These are not two isolated cases; almost every trader has walked this path at some point.

**What exactly is adding to a position?**

Simply put, adding is a second vote on the same logic. If the logic still holds, you're just increasing profits; if the logic has already collapsed, you're accelerating losses. The issue isn't the act of adding itself but whether you've truly thought it through beforehand.

Many people can't distinguish between two types of "buy more as it drops":

One is technical adding—planning in advance the entry points, stop-loss levels, and adding at key support levels according to the plan. This kind of adding is relatively controllable because you know the worst-case scenario.

The other is emotional adding—only starting to panic and look for reasons to add after a decline, without considering how heavy your position is or where your stop-loss is, just trying to ease anxiety by adding a bit more. You think you're "bottom-fishing," but in reality, you're just throwing a tantrum.

**"Buy more as it drops" only works under specific conditions**

Not every decline is worth adding to. I've seen too many cases where traders using high leverage contracts added positions and ended up blowing up—this isn't "buy more as it drops," it's "lose more as it drops."

If you truly want to add to your position, these conditions must be met:

First, you're trading spot or low-leverage contracts. Adding with high leverage is basically paving the way for liquidation.

Second, the major trend hasn't broken yet. Key support levels haven't been breached; you can't just stubbornly hold on because you're angry.

Third, you're using planned funds. Not emergency "firefighting" deposits made during a decline—if you're doing that, your capital plan is flawed.

Fourth, each step has a clear stop-loss. That is, you must know what the worst-case outcome is and be able to bear it.

All four conditions are indispensable. Many people only meet one or two and start reckless trading, only to regret it too late.

**When should you stop immediately?**

Watch out for these signals:

Your reason for adding becomes "I can't accept it." This is no longer a trading decision; it's just throwing a tantrum.

You can't specify your stop-loss point. You haven't even considered the worst-case scenario but still dare to add?

The original logic has already broken down, but you're still staring at the cost basis, fantasizing about "breaking even and leaving." This is the sunk cost fallacy, a sign of impending losses.

Your only goal now is to recover the loss. Reaching breakeven isn't the goal; profit is. When your mindset shifts to "as long as I don't lose money," you've already lost.

**Three essential rules for beginners**

First, only add to profitable positions, not to losing ones. Trading with the trend amplifies correct judgments; adding against the trend amplifies mistakes. Most people get this reversed.

Second, all additions must be planned. Impulsive additions are essentially emotional reactions. Plans may seem rigid, but they can save you.

Third, ask yourself three questions before adding: Does the logic still hold? Can I bear the stop-loss? Is there an exit route after adding? If you can't answer yes, don't add.

**Finally**

The market isn't short of people desperately adding positions. Some have made money, but most end up losing. The market rewards those who calmly follow the rules.

Adding is a tool—it can be a weapon or a gun. The key is where the blade points—toward market opportunities or toward your own weaknesses. Most people choose the latter.