#MarketCorrectionBuyOrHODL
Avoid significant losses during Market Corrections by considering Risk management and Emotional discipline while trading Spot Trading on Binance.
1. Risk Management
• Position Sizing: Only use a portion of your capital (e.g., 10-20%) on a single trade.
• Diversification: Don’t put all your funds in one asset. Diversify across multiple assets to spread reduce risk.
• Use the 1% or 2% Rule: Never risk more than 1-2% of your capital on a single trade.
• Set Daily Loss Limits: Decide in advance how much you’re willing to lose in a day, and stop trading once you hit that limit.
2. Emotional Discipline
• Control Emotions: Don’t let greed or fear drive your decisions. Stick to your strategy.
• Avoid Overtrading: Too many trades increase fees and the chance of errors.
• Stick to Your Plan: Follow your strategy and avoid making impulsive changes.