#CreatorPad How to 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 of their capital at the price of $100.
If the price drops, they are stuck and cannot 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 a rate of 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 about $87.
This means instead of having an entry of $100, it actually became 87$ only!
And the surprise: