The 2% Rule in Crypto Trading: Minimize Risk, Maximize Gains ๐๐
In volatile crypto markets, managing risk is key! The 2% Rule is a simple strategy used by smart traders to protect their portfolio.
What is it?
Never risk more than 2% of your total trading account on a single trade. Hereโs how it works:
Calculate Risk:
Letโs say you have $1,000. You should only risk $20 (2%) per trade.
Set Stop-Loss:
Use stop-loss orders to automatically exit the trade if it hits that 2% loss. This way, you avoid massive losses when the market moves against you.
This rule helps limit losses while giving you enough room to make profits on good trades!
๐ก Pro Tip: Combine the 2% Rule with strong technical analysis for even better results.
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