A practical example of smart capital management....✅
Assume there is a currency with a current price of $80, and your goal is to reach $110.
And your total capital is $200.
🔴 The common mistake among new traders:
They invest the entire amount ($200) at $80.
And if the price drops? They can't average down.
And if it returns to the original price? They didn't make any profit.
✅ The better strategy? Smartly dividing the capital:
First entry with only 20% = $40 at $80.
If the price drops to $75 → we average down with $30.
If it falls to $70 → we average down with another $30.
And if it continues to drop to $65 → we invest the remaining amount of $100.
🔍 What did we gain?
The average entry price became about $70.8 instead of $80.
This means if the price just returns to $80 (even without reaching $110),
We will achieve approximately 13% net profit, which is about $26 from the original $200.
🎯 The important lesson.
When you use your mind and plan, you can profit from the same move that a hasty person loses from.
🚫 The market does not sympathize with the emotional.
✅ The market rewards patient people who know how to manage their money wisely.
Examples of currencies where you can apply this strategy:
#التداول smartly
– $ADA