With the same stop-loss level, why does one person lose 1% while another loses 30%?
First, a definition: A common position-sizing formula is: position notional value ≈ account balance × risk per trade ÷ stop-loss distance.
The logic behind it: The larger the loss, the harder it is to recover. After losing 50%, you need to double your remaining funds just to get back to where you started.
For context, the market shows: $BTC current price 81542.88 (24h -0.68%).
It’s fine to play it safe. Staying in the game matters far more than how much you make on any one trade.
First, a definition: A common position-sizing formula is: position notional value ≈ account balance × risk per trade ÷ stop-loss distance.
The logic behind it: The larger the loss, the harder it is to recover. After losing 50%, you need to double your remaining funds just to get back to where you started.
For context, the market shows: $BTC current price 81542.88 (24h -0.68%).
It’s fine to play it safe. Staying in the game matters far more than how much you make on any one trade.