Crypto Tip: Position Sizing
Many trading resources often recommend keeping the risk on a single trade to around 1%–2% of your total capital. The exact percentage varies from person to person.
For example: with 10,000 USDT in total capital, a maximum loss of 1% on a single trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value would be about 5,000 USDT.
When I first got into crypto, I thought understanding candlestick charts was enough. Later, I realized that following rules is the first lesson.
Market update at the end: $BTC Current price: 82512.58 (24h -1.63%).
#BTC
Many trading resources often recommend keeping the risk on a single trade to around 1%–2% of your total capital. The exact percentage varies from person to person.
For example: with 10,000 USDT in total capital, a maximum loss of 1% on a single trade (100 USDT), and a stop-loss distance of 2%, the position’s notional value would be about 5,000 USDT.
When I first got into crypto, I thought understanding candlestick charts was enough. Later, I realized that following rules is the first lesson.
Market update at the end: $BTC Current price: 82512.58 (24h -1.63%).
#BTC