Mini thread: position sizing in 3 points 🧵
1️⃣ Decide what you can lose before you decide what to buy. Many traders cap it at 1-2% of the account per trade. On a $1,000 account, 1% is $10.
2️⃣ Let the stop set the size. If your stop sits 5% below entry, a $200 position loses about $10 when it gets hit. Wider stop = smaller position, tighter stop = bigger one.
3️⃣ Ten losers in a row at 1% still leaves you with about 90% of the account. Ten losers at 20% each leaves you with about 11%. Small size keeps you in the game long enough to learn.
How much do you risk per trade? 👇
#cryptotrading #tradingtips #RiskManagement #Binance
1️⃣ Decide what you can lose before you decide what to buy. Many traders cap it at 1-2% of the account per trade. On a $1,000 account, 1% is $10.
2️⃣ Let the stop set the size. If your stop sits 5% below entry, a $200 position loses about $10 when it gets hit. Wider stop = smaller position, tighter stop = bigger one.
3️⃣ Ten losers in a row at 1% still leaves you with about 90% of the account. Ten losers at 20% each leaves you with about 11%. Small size keeps you in the game long enough to learn.
How much do you risk per trade? 👇
#cryptotrading #tradingtips #RiskManagement #Binance