#ETH #BTC #ATOM Risk management of an account Having only #50Dollar Capital is a very important aspect of trading, especially if you have a limited amount of capital to invest,

A common rule of thumb is to risk no more than 1% of your trading account on any single trade. This means that if you have $50 to invest, you should not risk more than $0.50 on each trade.

- you need to calculate your stop loss level based on your entry price and your risk amount. A stop loss is an order that automatically closes your position when the price reaches a certain level, to limit your losses. To calculate your stop loss level, you need to divide your risk amount by the number of units or shares you are trading, and then subtract it from your entry price.

This means that if the price of the coin drops to $4.95 or lower, your position will be closed and you will lose $0.50.

- you need to adjust your stop loss level according to the market volatility and your trading style. A stop loss level that is too tight may trigger too often and prevent you from capturing the potential profits of a price movement. A stop loss level that is too wide may expose you to unnecessary losses and reduce your risk-reward ratio.

To lock in your profits. If your trade is going in your favor, and the price reaches a certain level of profit, you may want to move your stop loss level to your break-even point, or to a higher level of profit. This way, you can secure your gains and eliminate your risk, while still allowing your trade to run for more profits. This technique is called trailing your stop loss

To cut your losses. If your trade is going against you, and the price reaches a certain level of loss, you may want to close your position manually, before your stop loss level is triggered. This way, you can limit your losses and preserve your capital, while still respecting your risk-reward ratio. This technique is called discretionary exit

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I hope this helps you understand how to manage your risk factor if you have only $50 to invest.