📉💰 Position sizing. The one skill I wish I learned before blowing $600 on leveraged futures. Seriously, this separates surviving traders from blown accounts. Here's how: Never risk more than 1-2% of your total capital on any single trade.
Got a $1000 account? Your max loss per trade is $10-$20. Let's say you risk 1%, so $10. If your stop loss is set to lose $100 per BTC, you can only trade 0.1 BTC ($10 total risk / $100 loss per BTC = 0.1 BTC). If your stop loss is tighter, set to lose $10 per BTC, then you can trade 1 BTC ($10/$10 = 1 BTC). This rule ensures that even a string of bad trades won't wipe you out. Imagine losing 10 trades in a row – you'd only be down 10% (if risking 1%), not your entire capital. It’s fundamental.
Calculate this *before* every single trade. Make it a...
Got a $1000 account? Your max loss per trade is $10-$20. Let's say you risk 1%, so $10. If your stop loss is set to lose $100 per BTC, you can only trade 0.1 BTC ($10 total risk / $100 loss per BTC = 0.1 BTC). If your stop loss is tighter, set to lose $10 per BTC, then you can trade 1 BTC ($10/$10 = 1 BTC). This rule ensures that even a string of bad trades won't wipe you out. Imagine losing 10 trades in a row – you'd only be down 10% (if risking 1%), not your entire capital. It’s fundamental.
Calculate this *before* every single trade. Make it a...