Everyone is talking about DYOR, stop losses and compliance with risk management. But no one says how to do this and what rules to use.
We have created a mini-guide for you so that your sleep will not be disturbed by any notice of liquidation.
Risk management is a set of rules that help determine and control the amount of losses.
Main rule:
do not lose → save → increase.
To create a system, you need:
🟠Define trading strategy
Set profit and possible loss goals.
🟠 Evaluate finances
Determine how much money you are willing to lose and how much you are willing to earn.
🟠 Set loss limits
Determine when you will exit a trade to minimize losses.
🟠 Use stop losses
set orders that automatically close a trade if the price reaches a certain level.
🟠 Update strategy
Evaluate your strategy regularly and make changes as necessary.
It is important not only to build a strategy, but also to use it. Believe me, not a single trader has ever suffered from this.
