I will choose to trade with the coins in my portfolio than buying into new coins with FIAT. But with thorough analysis, I can invest with FIAT to buy into some coins, but definitely not my first choice from your options.
yes it may be able to generate profits and can cover the losses that you experience.
maybe there are still many other ways to recover losses and you don't do it in one way, so your chances will be greater so you can recover your losses.
of course you already understand and know more so you can do it well.