❤️ Important Post ❤️
📊 Capital Management When Entering Trades.
- Most people, when they buy a currency at a certain price and the currency starts to drop (correct), freeze and wait for it to return to their initial entry price so they can exit without a loss... or they wait for it to rise significantly to achieve profit.
But there is a smarter method called:
Smart Incremental Buying (Proper Capital Management) 👏
📌 How to use the method?
If you plan to enter the trade with an amount of 100$ for example, it is better to enter in increments… How? 👇
- A practical example to illustrate the idea:
You bought a currency at the price of 2$ for $40.
The currency dropped (correction) to $1.75? You reinforce again with an amount of $30.
It dropped further to $1.5? You reinforce for the third time with an amount of $30.
✅ The result?
You did not enter all your capital at once; you spread your entry over lower prices, and now you have a larger quantity of the currency at a lower entry price 👏
Your new average entry price will be approximately 1.60$ or lower.
🔑 The Benefit:
If the currency rebounds to only 1.80$ or $1.90
You will be profitable before the currency returns to the initial entry price ($2) 🔥
This means:
❌ You do not need to wait for the initial price to profit.
⚠️ Very Important Notes:
🔸 Do not use this method except with strong currencies or those in the accumulation phase.
🔸 Use it if you are confident in its rise in the near or medium future.
🔸 Do not enter all your capital in one go.
🎯 The foundation of success = Smart Capital Management.
Good luck to everyone 💙
@ALKING_TRADER
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