🤦♂️📉 The mistake that cost me $600? Ignoring position sizing. I learned the hard way so you don't have to. The 1-2% rule is your account's bodyguard. If you have a $1000 account, your maximum risk *per trade* is $10 (1%) or $20 (2%).
Let's say you're buying BTC at $60,000 with a stop loss at $59,500. Your risk per BTC is $500. With a 1% risk ($10), you can only afford to trade $10 / $500 = 0.02 BTC. If your stop loss is tighter, say $59,900, your risk is $100 per BTC. Then you could trade $10 / $100 = 0.1 BTC.
This rule stops you from taking knockout punches. Lose 10 small trades and you're down 10-20%, not out of the game. It's a non-negotiable calculation before every single trade. Make it your daily ritual.
#PositionSizing #FuturesTrading #RiskManagement #BinanceSquare
Let's say you're buying BTC at $60,000 with a stop loss at $59,500. Your risk per BTC is $500. With a 1% risk ($10), you can only afford to trade $10 / $500 = 0.02 BTC. If your stop loss is tighter, say $59,900, your risk is $100 per BTC. Then you could trade $10 / $100 = 0.1 BTC.
This rule stops you from taking knockout punches. Lose 10 small trades and you're down 10-20%, not out of the game. It's a non-negotiable calculation before every single trade. Make it your daily ritual.
#PositionSizing #FuturesTrading #RiskManagement #BinanceSquare