📚 Regardless of whether you are an experienced trader or just starting your journey in the world of cryptocurrencies, these key aspects are the foundation for achieving consistent profitability in trading.
🤑 Understanding risks and managing capital is not only a means of protecting against losses but also a tool for maximizing profits.
✅ Here are three simple rules that will help limit losses in case the market goes against you:
Rule #1: Never risk all your funds. Do not allocate more to a single trade than what your table calculates for you.
Rule #2: Determine the position size and set stop-loss and take-profit levels in advance, based on your analysis. After that, you can calmly close the terminal and wait for the trade to execute.
Rule #3: Do not open a trade if the risk/reward ratio is less than 1:3. This way, over a distance of 15 trades, even if you make 10 losing trades and only 5 winning trades, you will still be in good profit!
💰 Armed with these capital management rules, you will be able to make more thoughtful and informed decisions in the market, leading to more stable and successful trading.