Most beginners blow up their account with one trade — not because the trade was wrong, but because it was too big.
1. Decide how much you are willing to lose BEFORE you enter the trade. One percent of your account is the standard for beginners.
2. Find your stop-loss first, then size the position around it. The distance to your stop decides how much you buy, never the other way round.
3. A $1,000 account risking 1% on a Bitcoin trade loses $10 per trade. Ten losing trades in a row still leaves $900 in the account.
4. Never risk more to "win it back" after a loss. Doubling your size after a loss is how a bad day becomes a blown account.
5. Work out your position size with a calculator or a simple formula before you click buy — never in your head mid-trade.
6. Risk the same fixed amount on every trade. Consistency in size is what keeps one mistake from ending your account.
The rule: Size the trade to fit your risk — never stretch your risk to fit the trade.
What percentage of your account do you risk on a single trade — and has it ever saved you from a big loss?
$BTC $ETH #CryptoForBeginners #BinanceSquare #Crypto #CryptoTrading #Bitcoin
1. Decide how much you are willing to lose BEFORE you enter the trade. One percent of your account is the standard for beginners.
2. Find your stop-loss first, then size the position around it. The distance to your stop decides how much you buy, never the other way round.
3. A $1,000 account risking 1% on a Bitcoin trade loses $10 per trade. Ten losing trades in a row still leaves $900 in the account.
4. Never risk more to "win it back" after a loss. Doubling your size after a loss is how a bad day becomes a blown account.
5. Work out your position size with a calculator or a simple formula before you click buy — never in your head mid-trade.
6. Risk the same fixed amount on every trade. Consistency in size is what keeps one mistake from ending your account.
The rule: Size the trade to fit your risk — never stretch your risk to fit the trade.
What percentage of your account do you risk on a single trade — and has it ever saved you from a big loss?
$BTC $ETH #CryptoForBeginners #BinanceSquare #Crypto #CryptoTrading #Bitcoin