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.
๐ด 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.
โ 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.
๐ 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.
๐ฏ The important lesson:
When you use your mind and plan, you can profit from the same movement that a hasty person loses from.
๐ซ The market does not sympathize with the emotional.
โ 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


