How do you 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, and its target is $130.
Our capital is $100.
The mistake that most beginners make:
They invest their entire capital at the price of $100.
If the price drops, they get stuck and can't average down. And if the price returns to $100? They don't benefit or make a profit.
That's why we apply proper capital management:
We buy at $100 with 20% (i.e., $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 amount of $50.
What happens in this case?
Our new average entry becomes around $87.
This means instead of our entry being $100, it effectively became only $87!
And the surprise:
If the currency just returns to the price of $100 even without reaching the target of $130,
We will have achieved approximately 15% net profit — that is about $15 profit from $100.
Why is this important?
Because with smart management of the mind (not emotions), you made a profit in the market even if the price didn’t explode to the targets!
Always remember:
Most beginners lose and exit trading early.
That's why I always recommend that you build a real skill that benefits you in the future,
Because the market rewards those with patience and wise minds, not the impulsive ones.
#BinanceHODLerERA #USCryptoWeek
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