๐๐ธ I blew $5,400 trying to get rich quick, exactly why I preach position sizing now. It's the absolute game-changer separating those who survive from those who get wiped out. The golden rule? Risk just 1-2% of your total trading capital per trade. No more.
Let's say you have $1,000. Your max risk per trade is 1% ($10). Now, for a BTCUSDT trade, you enter at $30,000 and place your stop at $29,950. That's a $50 risk *per BTC*. To figure your position size: $10 (your max risk) / $50 (risk per BTC) = 0.2 BTC. That's your position size for *that specific trade*.
Why does this work? Because even with ten losing trades in a row (and trust me, it happens!), you've only lost 10% of your capital, not your entire account like I almost did. It forces you to respect the market and survive to trade...
Let's say you have $1,000. Your max risk per trade is 1% ($10). Now, for a BTCUSDT trade, you enter at $30,000 and place your stop at $29,950. That's a $50 risk *per BTC*. To figure your position size: $10 (your max risk) / $50 (risk per BTC) = 0.2 BTC. That's your position size for *that specific trade*.
Why does this work? Because even with ten losing trades in a row (and trust me, it happens!), you've only lost 10% of your capital, not your entire account like I almost did. It forces you to respect the market and survive to trade...