Hi. I'm a new trader and I share what I find helpful about trading. I mainly trade futures. Feel free to comment on my posts. Manage your risk always and DYOR.
2. Your Stop loss must not be bigger than the margin you used to open the trade.
I will explain how to use a good stop loss on my next post.
So why do people don't like the 2% rule for each trade.
Common excuses:
✅️I want to make a big profit ✅️My account is small and I want to grow it ✅️2% is so small, I can't use it 😯
Reality check:
✅️Liquidation happens every day ✅️No stop loss results in liquidation ✅️Using a big margin like 10% and more = high liquidation risk ✅️Your sense of urgency to make big profits quickly, comes from lack of experience and FOMO
So what can you do differently?
Start with changing your mindset about trading. Trading crypto is not a get rich hobby, that you come and 1x, 2x or 30x your money quickly then move on.
Instead, this market is not going anywhere. Crypto is the future, so I want you to focus on learning instead of rushing to make profits.
If you lose 4 trades in a row and you're using 2% for each trade, that's only an 8% loss to your account. Personally, if I lose 4 trades in a row, I call it a day and spend the rest of the day analyzing why I lost.
Was my entry rushed? meaning, if I'm going long, did I buy at the top or waited until the price came down and reacted at the bottom. The opposite goes for shorting as well.
Then, I have a clear answer on why I lost, and tomorrow, I can do better.
The 2% rule allows me to trade 7 days a week.
If I lose 4 trades of 2% each. I only need 2 trades that can give me 2x each to make back my loss (it's hypothetical example, but you get the idea)
Since, I started combining the 2% rule with a good stop loss, my winning rate has improved and so can you 🫵
$BAKE has been surging yesterday and is currently consolidating with higher highs on the 1hr time frame..will there be another push to the Moon? let's find out and see 😊
$PEOPLE Last night before I went to sleep. People reached at its peak 0.8800. I almost went in to my short position but I had my suspicions. Now things seem a little clear and we maybe continuing to fall back at least to 0.0600 if not lower.
I set my limit order as you can see and stop loss. ad well as take profit with 1% of my wallet. I just wanted to share. please do your research. this is not a financial advice. enjoy.
$EDU first resistance [0.9489] is broken ✅️. currently its Retesting weakly. buyers look strong...let's go break next resistance at 1.031 🎯 and 1.13 🎯.
if you are already in a long these can be your take profits or partial profits.
take advantage of pull backs to get a better price long position if you're just watching now.
⚠️use only 1% of funds, remember first goal is capital protection then second goal is the growth.
❌️This is not a financial advice please do your research, I'm only sharing my analysis
$LPT Currently, I'm waiting for this head and shoulders to confirm and break below the neckline. then I will let it Retest and go short. there's not much volume though. it may take a while but I just wanted to share.
As always please do your own research and don't rush into trades without knowing your stop loss and take profit.
$BTC flag pattern visible on the 1hr, 30m, 15m and 5m time frames. in an uptrend it usually indicates a continuation of the uptrend. could we see it break above 72k soon?
$BTC just formed a a double bottom followed by a consolidation and a hummer on the 1 minute time frame..are we going to see another all time high above 71k?
$AEVO ok now I have more determination to hold 😂. let's go aevo enough with these emotional roller coasters 🤣🤣🚀🚀. Guys this why using 1% is effective. Stop looking for quick profits. wait...now I'm giving advice? 🤣🤣
$BTC on the daily time frame, you can see a clear inverse head and shoulders. it's already confirmed with the breakout. let's see if we can break above 68k.