$AAVE moves 1.4 percent an hour and most traders still guess their size
Your stop loss belongs where the market invalidates the setup not where your feelings sit
Let us take a 1000 dollar account and risk 1 percent which is 10 dollars
With $AAVE trading at 126.1700 dollars a 1.4 percent hourly ATR means your stop sits 1.76 dollars away
Divide that 10 dollar risk by the 1.76 dollar stop distance and you get roughly 5 tokens
Buy those 5 tokens and a normal hourly swing hits your stop costing you exactly 10 dollars
If you guess a random size instead you are just gambling blind
What risk percentage do you use on your trades
#AAVE #TradingTips
Your stop loss belongs where the market invalidates the setup not where your feelings sit
Let us take a 1000 dollar account and risk 1 percent which is 10 dollars
With $AAVE trading at 126.1700 dollars a 1.4 percent hourly ATR means your stop sits 1.76 dollars away
Divide that 10 dollar risk by the 1.76 dollar stop distance and you get roughly 5 tokens
Buy those 5 tokens and a normal hourly swing hits your stop costing you exactly 10 dollars
If you guess a random size instead you are just gambling blind
What risk percentage do you use on your trades
#AAVE #TradingTips