A Practical Example of Smart Capital Management:

Assume there is a currency currently priced at $80, and your target is for it to reach $110.

And your total capital is $200.

๐Ÿ”ด The common mistake among new traders:

They enter with the full amount ($200) at $80.

And if the price drops? They can't average down.

And if it returns to the original price? They haven't made any profit.

โœ… The better strategy? Smartly dividing your capital:

First entry with only 20% = $40 at $80.

If the price drops to $75 โ†’ we average down with $30.

If it drops to $70 โ†’ we average down with another $30.

And if it continues to drop to $65 โ†’ we enter with the remaining amount of $100.

๐Ÿ” What did we gain?

The average entry price became approximately $70.87 instead of $80.

This means if the price returns just to $80 (even without reaching $110),

We will achieve about 13% net profit, which is around $26.79 from the original $200.

๐ŸŽฏ The important lesson:

When you use your mind and plan, you can profit from the same movement that a hasty person loses from.

๐Ÿšซ The market does not sympathize with the emotional.

โœ… The market rewards patient people, those who know how to manage their money wisely.

Examples of currencies where you can apply this strategy:

$ETH โ€“ $SOL โ€“ $ADA

#Capital_Management

#Smart_Trading

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