Let's take a simple practical example:
We have a currency priced at $100, and its target is $130.
Our capital is $100.
The mistake most beginners make:
They enter with all their capital at $100.
If the price drops, it's limited and can't be consolidated. And if the price returns to $100? They won't benefit or make a profit.
So, we apply proper capital management:
We buy at $100 with a 20% discount ($20).
If the price drops to $95, we consolidate with $15.
If it drops to $85, we consolidate with an additional $15.
And at $80, we consolidate with the remaining $50.
What happens in this case?
Our new average entry will be approximately $87.
In other words, instead of entering at $100, it's actually only $87!
And the surprise:
If the currency had only returned to $100, even without reaching the $130 target,
we would have achieved approximately a 15% net profit—meaning about $15 profit on $100.
Why is this important?
Because with smart mental management (not emotion), you've made profits in the market even if the price doesn't explode to the target!
Always remember:
Most beginners lose and then exit the trade early.
That's why I always recommend building real skills that will benefit you in the future,
because the market rewards those with patience and wise minds, not those who rush. $BTC