Many people think position sizing is simple, but this is where it's easy to go wrong:
For example: with an account balance 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.
Keeping the risk per trade small enough means you'll still have plenty of capital left after several consecutive bad calls, rather than being knocked out by one or two mistakes.
Before opening a position, decide on three numbers: the stop-loss price, how much you can afford to lose on the trade, and the position size calculated from those figures.
Related coin: $BTC Current price: 74556.07 (24h -0.44%).
Just chatting—whether you make or lose money, you have to bear the consequences yourself.
For example: with an account balance 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.
Keeping the risk per trade small enough means you'll still have plenty of capital left after several consecutive bad calls, rather than being knocked out by one or two mistakes.
Before opening a position, decide on three numbers: the stop-loss price, how much you can afford to lose on the trade, and the position size calculated from those figures.
Related coin: $BTC Current price: 74556.07 (24h -0.44%).
Just chatting—whether you make or lose money, you have to bear the consequences yourself.