Salute to the crypto people!🤝🤝

Have you ever thought that trading starts not with huge charts and fancy indicators, but with simple mathematical calculations? Yes, yes! In this article, we will analyze how basic arithmetic can save your wallet from collapse.

So, are you ready to count your money before you lose it? Let's go! 😄

The secret ingredient of trading is capital

Let's start from the very beginning - capital. This is the money you are willing to invest in trading. Imagine you have $1000 and you are determined to conquer the market. But stop-stop! Before you click the "buy" button, it is important to calculate how much you are willing to lose on each transaction (yes, it is not only the winnings that need to be planned).

The golden rule of experienced traders is risk per trade. For example, if you are ready to lose no more than 1% on one trade, then on $1000 it will be $10. And even if something goes wrong, the wallet will remain with money, and you will have 99 more attempts to become a financial tycoon! 💰

How to calculate risk and reward?

Now let's look at the risk-reward ratio (R/R). It's like "How much can I lose?" versus "How much can I make?" 💸. For example, if you risk $10 to make $30, your R/R = 1:3. Now that sounds like a good deal!

You know how they say in the casino: "Always know when to leave"? So it is in trading: always know your risk! If you are waiting for $30 profit, and the risk of losing only $10, then the deal sounds much sweeter.🍬

Leverage is your "accelerator", but be careful!

Leverage is like a magic wand in the trading world. It allows you to trade with more money than you have in your account. Imagine you have $1000, but with a leverage of 1:10 you can trade with $10,000. Sounds like a dream? Well, if everything goes well. But if not... Well, you get the idea 😅. Your losses will also increase by 10 times. So be careful with this magic tool!

Example: How does it all work?

Let's say you bought a cryptocurrency for $100 and plan to sell it for $120 (we all hope for growth, right? 😎). You are willing to lose $10 if the price goes wrong, and set a stop loss at $90. Your potential profit is $20, and your risk is $10. Risk to reward ratio = 1:2. Simple calculation - simple trade.

And yes, don't forget: the main goal is not to lose money faster than you earn it! 😉

Why Simple Arithmetic Will Save Your Deposit

Remember one thing: it doesn't matter how cool your indicators and forecasts are. If you don't calculate your risks, your capital will simply melt like ice cream on a hot day 🫠. Simple arithmetic is the foundation that will help you trade consciously and confidently.

Start applying these simple, yet so important principles to your trades today! And don't forget to subscribe to new articles so you don't miss out on even more useful (and fun) tips! 😎

#tradingtips #cryptomarket #riskmanagement #starttradin

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