Manage your trade wisely and profit even when the price drops?
Let’s take a simple practical example:
We have a currency priced at $100, with a target of $130.
Our capital is $100.
The mistake most beginners make:
They invest all their capital at a price of $100.
If the price drops, they are stuck and cannot average down. And if the price returns to $100? They gain nothing.
That’s why we implement proper capital management:
We buy at $100, with 20% (20$).
If the price drops to $90, we average down with $15.
If it drops to $80, we average down with an additional $15.
And at $70, we average down with the remaining amount of $30.
And keep the remaining 20% out of the market.
What happens in this case?
Our new average entry becomes around $75.
Instead of our entry being $100, it effectively became only $75!
And the surprise:
If the currency just returns to the price of $100, even without reaching the target of $110,
We will have achieved approximately 15% net profit — that is about $10 profit from $100.
Why is this important?
Because with smart management of the mind (not emotions), you profited in the market even if the price didn't explode to the targets!
Always remember:
Most beginners lose and exit trading early.
That’s why I always recommend that you build a real skill that benefits you in the future,
Because the market rewards those with a long-term mindset and wise minds, not the hasty ones.