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Risk management💫
How to manage a 100$ account Trading Derivatives On Binance..
1. Margins calculated risk: This risk management system is popularly among many traders especially the (newbies) were they calculate the risk using stoploss percentage to know the kind of margins and leverage to use on a particular trade.
2. Position size risk management system: This refers to the quantity of contracts being bought or sold. This is been calculated by the exact percentage amount a trader is willing to risk on a particular trade, this particular risk management system is cool.
So let's start from the first one
How to manage your 100$ account using margin calculated risk.
A persons with $100 account is supposed to risk nothing more than 15-20% of his account which is around $15-$20 with a rule of taking not hitting more than 1 stop Loss per day.
So let assume on your first day u took a day with 20% of your capital with 10x leverage and a take profit of 150% which hitting SL on that trade will make u to loose $20 and hitting your target will make you to be in Profit of $30 and finally it hit your SL.
That is 100% ($-20) loss on first day On second day u where having a capital of $80 which 20% of it is $16 and u took another trade with same 10x leverage and finally u hit a take profit of 150% ($24)
On your third day You were having total capital of $104 and u took another trade with 20% ($20.8) and u hit a target of 200% Rio ($41.8) On your fourth day U were having capital of 145.8$ U took another trade with 20% (29$) and hit another target of 150% that is 43.6$ profit which u end the day with total of 189.4$ capital.
On your fifth day U took another trade with 20% of your capital (37.8$) but unfortunately it hit your Sl.
So overall U started the week with $100 you took 3 winning trade 2 losing trade And by the end of the week u will still be in profit of 152$ that is plus 50% of your innital capital.
That's the power of risk management it's not by how much SL u hit But how often u maintain your risk. I hope this will help cause how I have been seen people loosing money these days is too much😣
#Write2Earn!
#BinanceSquareFamily
1. Margins calculated risk: This risk management system is popularly among many traders especially the (newbies) were they calculate the risk using stoploss percentage to know the kind of margins and leverage to use on a particular trade.
2. Position size risk management system: This refers to the quantity of contracts being bought or sold. This is been calculated by the exact percentage amount a trader is willing to risk on a particular trade, this particular risk management system is cool.
So let's start from the first one
How to manage your 100$ account using margin calculated risk.
A persons with $100 account is supposed to risk nothing more than 15-20% of his account which is around $15-$20 with a rule of taking not hitting more than 1 stop Loss per day.
So let assume on your first day u took a day with 20% of your capital with 10x leverage and a take profit of 150% which hitting SL on that trade will make u to loose $20 and hitting your target will make you to be in Profit of $30 and finally it hit your SL.
That is 100% ($-20) loss on first day On second day u where having a capital of $80 which 20% of it is $16 and u took another trade with same 10x leverage and finally u hit a take profit of 150% ($24)
On your third day You were having total capital of $104 and u took another trade with 20% ($20.8) and u hit a target of 200% Rio ($41.8) On your fourth day U were having capital of 145.8$ U took another trade with 20% (29$) and hit another target of 150% that is 43.6$ profit which u end the day with total of 189.4$ capital.
On your fifth day U took another trade with 20% of your capital (37.8$) but unfortunately it hit your Sl.
So overall U started the week with $100 you took 3 winning trade 2 losing trade And by the end of the week u will still be in profit of 152$ that is plus 50% of your innital capital.
That's the power of risk management it's not by how much SL u hit But how often u maintain your risk. I hope this will help cause how I have been seen people loosing money these days is too much😣
#Write2Earn!
#BinanceSquareFamily
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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