Let's talk about position sizing.
A common position-sizing formula: position notional value ≈ account balance × risk per trade ÷ stop-loss distance.
One thing many people overlook: keeping the risk per trade small enough means that even after several consecutive bad calls, you'll still have enough capital left in your account—not so much damage that one or two mistakes wipe you out.
Before placing an order, write down three numbers: the stop-loss price, the maximum amount you're willing to lose on the trade, and the position size calculated from those figures.
Relevant coin: $BTC Current price: 71319.46, 24h -3.09%.
#BTC
A common position-sizing formula: position notional value ≈ account balance × risk per trade ÷ stop-loss distance.
One thing many people overlook: keeping the risk per trade small enough means that even after several consecutive bad calls, you'll still have enough capital left in your account—not so much damage that one or two mistakes wipe you out.
Before placing an order, write down three numbers: the stop-loss price, the maximum amount you're willing to lose on the trade, and the position size calculated from those figures.
Relevant coin: $BTC Current price: 71319.46, 24h -3.09%.
#BTC