#ETHRally How to manage your transaction wisely and even profit in case of a price drop?
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 most beginners make:
They invest all their capital at the price of $100.
If the price drops, they are stuck and cannot average down. And if the price goes back to 100$ ? They make no profit.
That’s why we apply good capital management:
We buy at 100$ for 20% (20$).
If the price falls to $95, we average down with $15.
If the price drops to $85, we average down with 15$ additional.
And at $80, we average down with the remaining amount of $50.
What happens in this case?
Our average entry price becomes around $87.
That is to say, instead of having an entry price of $100, it is actually only 87$ !
And the surprise:
If the currency simply returns to the price of 100$ even without reaching the target of $130,
we will realize almost 15% net profit — about $15 profit on $100.
Why is this important?
Because with intelligent management of the mind (and not emotions), you have profited in the market even if the price does not explode towards the targets!
Always remember:
Most beginners lose and then exit trading too early.
That’s why I always recommend developing a real skill that will be useful to you in the future,
because the market rewards those who have a long-term vision and wise thinking, not the impatient.