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 $100.

If the price drops, they are stuck and unable to average down. And if the price returns to $100? They do not benefit or make a profit.

That's why we apply proper capital management:

We buy at 100$ at 20% (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 $50.

What happens in this case?

Our new average entry becomes around $87.

This means that instead of our entry being $100, it effectively became 87$ only!

And the surprise:

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

We will have achieved almost 15% net profit — meaning about $15 profit from $100.

Why is this important?

Because with smart management of the mind (not emotion), you made a profit in the market even if the price did not explode to the targets!

Always remember:

Most beginners lose and exit trading early.

That's why I always recommend building a genuine skill that benefits you in the future,

Because the market rewards those with patience and wise minds, not the hasty ones.