How to manage your trade wisely and make a profit even if the price drops?

Scenario:

- Entry price: $100

- Target: $130

- Capital: $100

1. Initial purchase

- You buy 1 coin for 100$ (using all your capital).

2. What if the price drops?

Let's assume the price dropped to 80$ instead of rising.

Smart management strategy (averaging down):

If you have additional capital (for example, 100$ as reserve), you can buy a second coin at $80.

- Coin 1: bought at $100

- Coin 2: bought at $80

- Average price:

(100 + 80) / 2 = $90

3. How to profit even with a price drop?

Now you have 2 coins, and the cost of one (average) = $90.

If the price returns to just 100$ (without reaching your main target of $130):

- Value of coins: 2 × 100$ = $200

- Purchase cost: $180

- Profit: 200$ - 180$ = $20

This means you made a profit of 20$ just if the price returned to your initial entry point, instead of waiting for it to rise to $130!

4. Manage the trade wisely

- Don't invest all your capital at once.

- Divide your capital into several portions (for example: 50% initial purchase, 50% reserve for averaging down).

- Don't buy randomly, but plan for support or expected drop areas.

- Use averaging down to reduce your break-even point and profit from minor corrections.

Important Alert

- You must have a clear plan for your capital.

- Don't overbuy every time the price drops without proper management (so you don't drain your capital).

- This method requires discipline, patience, and capital allocation.