Should position size be based on intuition or calculated from the stop-loss distance?
For example: with an account balance of 10,000 USDT, a willingness to risk only 1% per trade (100 USDT), and a stop-loss distance of 2%, the position's notional value would be about 5,000 USDT.
Here's the key point: opening positions in multiple similarly moving coins in the same direction compounds the risk, so you should also set a cap on your total position size.
Related coin: $BTC is quoted at 72,916.74, down 1.48% over 24 hours.
Cross-check information from multiple sources before acting; don't rely on just one source.
#BTC
For example: with an account balance of 10,000 USDT, a willingness to risk only 1% per trade (100 USDT), and a stop-loss distance of 2%, the position's notional value would be about 5,000 USDT.
Here's the key point: opening positions in multiple similarly moving coins in the same direction compounds the risk, so you should also set a cap on your total position size.
Related coin: $BTC is quoted at 72,916.74, down 1.48% over 24 hours.
Cross-check information from multiple sources before acting; don't rely on just one source.
#BTC
