๐My TOP 5 recommendations for saving a deposit, based on personal experience
1.Number of positions. Remember, you should not have more than 3 positions open! This is a very important rule. If you want to open a new one, then close one of the already open ones. Why? Because liquidation can happen at any time in a few seconds and the more positions are open, the more you will lose. You can deviate from this rule only during a bull market, but when the market is bearish, this rule is mandatory!
2. We invest only 1-3% of the deposit in one position! Even if your deposit is $100/150. It's better to earn a little than to lose everything!
3. Rule of two stop losses! If you close two stop loss positions in a row on the same day, then trading for that day is over! Otherwise, excitement begins and a desire to win back appears. And this is a huge risk of losing an impressive part of the deposit.
4. Take profits! Please don't chase peak growth, it's a very slippery slope. The ideal formula is to lock in a net interest rate of 1-3% (not including leverage)! It is better to re-open a position than to hold it and go negative.
5. STOP LOSS IS MANDATORY! Don't try to trade without a stop loss, you will quickly lose everything. Remember, if a position is open without restrictions, then you are a slave to this coin! It will be very difficult for you to close a position seeing -200% without a stop loss, this is a purely psychological moment in front of the fear of losing money. And then it will fall more and more, but you will hope that the coin will grow.This is why you need a stop that will automatically close your position at -20 to -30%. Yes, I agree, itโs unpleasant! But this is only part of the deposit.