Learning this one thing won't make me stronger overnight, but it can help me avoid one basic mistake.
Today's lesson: position sizing
For example: with an account of 10,000 USDT, risking only 1% per trade (100 USDT), and a stop-loss distance of 2%, the position's notional value would be about 5,000 USDT.
After consecutive losses, reduce your position size or take a break. Don't increase your position size to try to win it all back in one go.
For a market reference: $BTC is quoted at 65,350.66, down 3.04% over 24h.
Just chatting—this isn't advice.
Today's lesson: position sizing
For example: with an account of 10,000 USDT, risking only 1% per trade (100 USDT), and a stop-loss distance of 2%, the position's notional value would be about 5,000 USDT.
After consecutive losses, reduce your position size or take a break. Don't increase your position size to try to win it all back in one go.
For a market reference: $BTC is quoted at 65,350.66, down 3.04% over 24h.
Just chatting—this isn't advice.