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 that most beginners make:
Enters with all his capital at the price of $100.
If the price drops, it gets confined and it can't reinforce. And if the price returns to $100? No benefit or profit.
That's why we apply proper capital management:
We buy at $100 at a rate of 20% ($20).
If the price drops to $95, we reinforce with $15.
If it drops to $85, we reinforce with an additional $15.
And at $80, we reinforce with the remaining $50.
What happens in this case?
Our average new entry becomes about $87.
This means that instead of our entry being $100, it actually became only $87!
And the surprise:
If the currency returns to the price of $100 even without achieving the target of $130,
We will have achieved a net profit of about 15% — which means around $15 profit from $100.
Why is this important?
Because with smart management of the mind (not emotions), you still profit in the market even if the price doesn'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 long-term vision and wise minds, not the hasty ones.
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Try this method and you'll thank me later 😉