Is position size determined by feel, or calculated based on the stop-loss distance?
First, what does that mean? For example: with total funds of 10,000 USDT, if you're willing to lose only 1% (100 USDT) on a single trade, and the stop-loss distance is 2%, the position's notional value would be about 5,000 USDT.
The principle: Keep the risk on each trade small enough that, even after several consecutive losses, you'll still have sufficient funds in your account and won't be knocked out by one or two mistakes.
The coin mentioned above: $BTC , current price 82830 (24h +0.15%).
Leverage amplifies gains and losses, not the accuracy of your judgment. The higher the leverage, the less room for error.
#BTC
The data comes from public sources; please verify it yourself.
First, what does that mean? For example: with total funds of 10,000 USDT, if you're willing to lose only 1% (100 USDT) on a single trade, and the stop-loss distance is 2%, the position's notional value would be about 5,000 USDT.
The principle: Keep the risk on each trade small enough that, even after several consecutive losses, you'll still have sufficient funds in your account and won't be knocked out by one or two mistakes.
The coin mentioned above: $BTC , current price 82830 (24h +0.15%).
Leverage amplifies gains and losses, not the accuracy of your judgment. The higher the leverage, the less room for error.
#BTC
The data comes from public sources; please verify it yourself.