$UNI drops 6.2 percent today and most traders still size their trades wrong
You cannot guess position size based on how much you like the coin
On a 1000 dollar account risking 1 percent means losing 10 dollars total
The 1h ATR on $UNI is 1.4 percent right now so price swings about 10 cents an hour
If you put your stop at that exact ATR distance you divide your 10 dollar risk by 10 cents
That gives you a position of 100 tokens worth about 736 dollars
If volatility expands your stop has to breathe or your math breaks down
Always calculate your risk in cash before you touch the buy button
What is your maximum dollar loss on a standard trade
#UNI #TradingTips
You cannot guess position size based on how much you like the coin
On a 1000 dollar account risking 1 percent means losing 10 dollars total
The 1h ATR on $UNI is 1.4 percent right now so price swings about 10 cents an hour
If you put your stop at that exact ATR distance you divide your 10 dollar risk by 10 cents
That gives you a position of 100 tokens worth about 736 dollars
If volatility expands your stop has to breathe or your math breaks down
Always calculate your risk in cash before you touch the buy button
What is your maximum dollar loss on a standard trade
#UNI #TradingTips