Quick Reference Card: Position Management
Per-trade risk is the amount you lose if a trade hits its stop-loss. It is roughly equal to the notional value of your position multiplied by the percentage distance between your entry price and stop-loss price.
Position size calculated based on stop-loss distance has no direct relationship to leverage. Leverage only affects how much margin is used, assuming the liquidation price is beyond the stop-loss price.
After a string of losses, reduce your position size or take a break. Don’t increase your position size to try to win it all back in one go.
Coin mentioned in the article: $BTC is quoted at 81608.46, 24h: -0.68%.
This is not investment advice. Don’t follow it.
Per-trade risk is the amount you lose if a trade hits its stop-loss. It is roughly equal to the notional value of your position multiplied by the percentage distance between your entry price and stop-loss price.
Position size calculated based on stop-loss distance has no direct relationship to leverage. Leverage only affects how much margin is used, assuming the liquidation price is beyond the stop-loss price.
After a string of losses, reduce your position size or take a break. Don’t increase your position size to try to win it all back in one go.
Coin mentioned in the article: $BTC is quoted at 81608.46, 24h: -0.68%.
This is not investment advice. Don’t follow it.