📐 Today's lesson: position sizing
For example: with total capital of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position's notional value would be about 5,000 USDT.
Before opening a position, write down three numbers: the stop-loss price, the maximum loss per trade, and the position size calculated from those figures.
When the market is highly volatile, avoid adding to your position. Wait for prices to stabilize before deciding.
Coin mentioned in the article: $BTC , current price 81704.56 (24h -0.67%).
#BTC
For example: with total capital of 10,000 USDT, a maximum loss of 1% per trade (100 USDT), and a stop-loss distance of 2%, the position's notional value would be about 5,000 USDT.
Before opening a position, write down three numbers: the stop-loss price, the maximum loss per trade, and the position size calculated from those figures.
When the market is highly volatile, avoid adding to your position. Wait for prices to stabilize before deciding.
Coin mentioned in the article: $BTC , current price 81704.56 (24h -0.67%).
#BTC