Position sizing in three sentences:
Many trading resources recommend limiting the risk on each trade to around 1%–2% of your total capital, though the right percentage varies from person to person.
Set your stop-loss first, then work backward from the loss you can afford to determine your position size; this keeps the amount you lose on each trade within a range you’ve calculated in advance.
After a losing streak, you can reduce your position size or take a break—don’t increase it in an attempt to win it all back in one go.
$BTC 81696.47 (-0.95%)
Many trading resources recommend limiting the risk on each trade to around 1%–2% of your total capital, though the right percentage varies from person to person.
Set your stop-loss first, then work backward from the loss you can afford to determine your position size; this keeps the amount you lose on each trade within a range you’ve calculated in advance.
After a losing streak, you can reduce your position size or take a break—don’t increase it in an attempt to win it all back in one go.
$BTC 81696.47 (-0.95%)