How do you 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 that most beginners make:

They invest all their capital at the price of $100.

If the price drops, they are stuck and unable to average down. And if the price returns to $100? They benefit nothing and make no profit.

That's why we apply proper capital management:

We buy at $100 with 20% (i.e., $20).

If the price drops to $95, we average down with $15.

If it falls to $85, we average down with an additional $15.

And at $80, we average down with the remaining amount of $50.

What happens in this case?

Our new average entry price becomes around $87.

Which means instead of having an entry at $100, it effectively became just $87!

And the surprise:

If the currency just returns to the price of $100, even without reaching the target of $130,

We will have achieved almost a 15% net profit — that’s about $15 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 building a real skill that benefits you in the future,

Because the market rewards those with a long-term mindset and wise thinking, not the impulsive.