How do you manage your trade wisely and profit even when the price drops?
Let's take a simple practical example to understand the idea:
Let's assume we have a cryptocurrency with a current price of $100, and the target we aspire to reach is $130.
And our available capital for investment is $100.
The mistake most beginners make:
They invest all their capital at once at a price of $100.
What happens if the price drops afterward?
They get stuck in the trade without the ability to average down. Even if the price later returns to $100, they will not make any profit, barely recovering their money.
The correct solution:
Application of smart and gradual capital management.
The wise entry plan:
We buy 20% of the capital (i.e., $20) at a price of $100.
If the price drops to $95, we strengthen by buying an additional $15.
When the price drops to $85, we buy an additional $15.
And when the price reaches $80, we use the remaining $50.
What happens this way?
The new average entry price becomes approximately $87 instead of $100.
And the amazing result:
If the price only returns to $100 (without needing to reach $130),
We will achieve a net profit of about 15% — that is, around $15 from our total capital.
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Why is this strategy so important?
Because in this way you act wisely and rationally, not emotionally and impulsively.
You deal with the market like professionals do: you build strong positions even if the market temporarily turns against you.
Always remember:
Most beginners lose because they gamble everything they have at once.
Only a few persevere, build skills, and learn how the market rewards them later.
Final advice:
Build your experience calmly and confidently, as the market does not forgive the hasty but rewards those with patience and thoughtful minds.