โค๏ธ Important Post โค๏ธ
๐ Capital Management When Entering Trades.
- Most people, when they buy a currency at a certain price and the currency starts to drop (correct), freeze and wait for it to return to their initial entry price so they can exit without a loss... or they wait for it to rise significantly to achieve profit.
But there is a smarter method called:
Smart Incremental Buying (Proper Capital Management) ๐
๐ How to use the method?
If you plan to enter the trade with an amount of 100$ for example, it is better to enter in incrementsโฆ How? ๐
- A practical example to illustrate the idea:
You bought a currency at the price of 2$ for $40.
The currency dropped (correction) to $1.75? You reinforce again with an amount of $30.
It dropped further to $1.5? You reinforce for the third time with an amount of $30.
โ The result?
You did not enter all your capital at once; you spread your entry over lower prices, and now you have a larger quantity of the currency at a lower entry price ๐
Your new average entry price will be approximately 1.60$ or lower.
๐ The Benefit:
If the currency rebounds to only 1.80$ or $1.90
You will be profitable before the currency returns to the initial entry price ($2) ๐ฅ
This means:
โ You do not need to wait for the initial price to profit.
โ ๏ธ Very Important Notes:
๐ธ Do not use this method except with strong currencies or those in the accumulation phase.
๐ธ Use it if you are confident in its rise in the near or medium future.
๐ธ Do not enter all your capital in one go.
๐ฏ The foundation of success = Smart Capital Management.
Good luck to everyone ๐
@ALKING_TRADER
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