🛡️ Risk Management Formula for Beginners — So You Don’t Blow Up 🧠💥
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“How much should I risk?”
“Where do I put stop-loss?”
This post will save beginners money and stress.
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🪜 Step-by-Step Risk Management
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✅ Step 1: Decide Your Max Risk Per Trade
🔹 Beginners = 1%
If you have $500 → never risk more than $5 on a trade.
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✅ Step 2: Find Entry + Stop-Loss Distance
Example:
• Entry: $1.00
• Stop-loss: $0.95
• Risk per coin = $0.05
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✅ Step 3: Use the Formula
Position Size = Max Risk ÷ Risk per Coin
Using the example:
• Max risk = $5
• Risk per coin = $0.05
→ $5 ÷ 0.05 = 100 coins
This is how pros do it ✅
No guessing, no over-leverage.
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✅ Step 4: Always Use a Stop-Loss
Don’t say “I’ll exit manually.”
That’s a trap.
Set your SL before you enter — every single time.
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✅ Step 5: Reward Must Be > Risk
Risk: $5
Target: $10 or more
→ That’s 2R = Solid system
Never enter a trade unless it gives you at least 1.5x your risk.
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Want to stay in the game long enough to win?
Master risk first, profit comes next 🔐
