๐จ 90% of Crypto Traders Lose Money Doing This (And How to Fix It)
When I first started trading, I thought profits came from finding the "perfect entry."
I was wrong. Profits come from capital preservation.
Here is my 3-step risk management checklist before taking ANY position:
1๏ธโฃ The 1% Rule: Never risk more than 1% of your total portfolio on a single trade. If you have $1,000, your maximum loss per trade should be $10.
2๏ธโฃ Invalidate First, Target Second: Before looking at where price *could* go, find the price level that proves your idea WRONG. Set your Stop Loss there immediately.
3๏ธโฃ Position Sizing Equation:
Position Size = (Account Risk in $) รท (Distance to Stop Loss in %)
Trading is not about being right 100% of the time. Itโs about ensuring your losses are small and your wins are calculated.
๐ What's the #1 rule you strictly follow in your trading system? Letโs discuss in the comments.
#BinanceSquare #cryptotrading #RiskManagement #educational
When I first started trading, I thought profits came from finding the "perfect entry."
I was wrong. Profits come from capital preservation.
Here is my 3-step risk management checklist before taking ANY position:
1๏ธโฃ The 1% Rule: Never risk more than 1% of your total portfolio on a single trade. If you have $1,000, your maximum loss per trade should be $10.
2๏ธโฃ Invalidate First, Target Second: Before looking at where price *could* go, find the price level that proves your idea WRONG. Set your Stop Loss there immediately.
3๏ธโฃ Position Sizing Equation:
Position Size = (Account Risk in $) รท (Distance to Stop Loss in %)
Trading is not about being right 100% of the time. Itโs about ensuring your losses are small and your wins are calculated.
๐ What's the #1 rule you strictly follow in your trading system? Letโs discuss in the comments.
#BinanceSquare #cryptotrading #RiskManagement #educational