Useful insights may not make me rich overnight, but they can help me avoid a few pitfalls.
Today's topic: position sizing
A lot of trading materials recommend limiting the risk on each trade to around 1%–2% of your total capital. The exact percentage depends on your personal risk tolerance.
Before opening a position, write down three numbers: your stop-loss price, how much you can afford to lose on the trade, and the position size calculated from those figures.
Quick glance: $BTC current price 75000.01, 24h -0.26%.
Today's topic: position sizing
A lot of trading materials recommend limiting the risk on each trade to around 1%–2% of your total capital. The exact percentage depends on your personal risk tolerance.
Before opening a position, write down three numbers: your stop-loss price, how much you can afford to lose on the trade, and the position size calculated from those figures.
Quick glance: $BTC current price 75000.01, 24h -0.26%.