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 most beginners make:
They invest all their capital at the price of $100.
If the price drops, they get stuck and cannot average down. And if the price returns to $100? They gain nothing and make no profit.
That's why we apply proper capital management:
We buy at $100 for 20% (i.e., $20).
If the price drops to $95, we average down with $15.
If it drops 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 about $87.
This means instead of having an entry at $100, it is actually $87 only!
And the surprise:
If the currency just returns to the price of $100 even without reaching the target of $130,
We will have achieved approximately 15% net profit — which is 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 surge 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 perspective and wise minds, not the hasty ones.
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