RoughTrade

Risk Management: How Much Should You Put in a Trade?

Everyone talks about profits… Everyone shares “10x coin” lists…
But barely anyone talks about risk management. The most underrated and most important part of trading.

Let’s be honest.
You enter a trade with your whole capital… it goes red… now you’re stuck, helpless, and hoping the market will “save you.”
We’ve all been there. But it’s time to change that mindset.

Before every trade, ask yourself:
🧠 How much am I willing to lose if this goes wrong?
💡 How much of my capital should go in the first entry?

Let me give you my golden rule:
Never enter a trade with more than 40% of your planned capital.

Let’s break it down simply:
You have $500 for a coin.
✅ Your first entry = $200
✅ DCA zone = $150 if it drops 15–20%
✅ Final DCA = $150 if it dips further
Now your average entry is strong, you’ve left room to breathe, and your chances of recovery are much higher.

But most people do this:
💸 All-in on first entry (usually FOMO)
📉 Coin dips 15%, panic mode ON
😵 No funds left to average
Now you’re stuck.

Trading is not about being right every time.
It’s about being prepared when you're wrong.
Even professional traders have losses—but they manage them smartly.

Here’s a personal example:
I entered $RNDR at $9.50 with $80 only.
It dipped to $8—didn’t panic—DCA’d with $60.
Then again at $7.2 with $60.
Total cost: $200.
Average: $8.1
Sold at $9.1 for 12.3% profit.
Slow, steady, controlled. That’s discipline.

Now ask yourself:
If a 10% gain on $500 = $50
Would you risk losing $200+ for it?

Smart traders think in %
Not hype. Not dreams. Not noise.

Final thoughts:
💥 Trade with logic, not ego
💥 Keep free capital for DCA
💥 Don't aim for home runs—aim for consistent small wins
💥 And yes… Risk Management is what separates traders from gamblers.

Let me know in the comments if I should do a live breakdown of my next trade.

If you’re new here—
I’m Aamir from Pakistan. I don’t run a paid group. I’m not a signal guy.
Just sharing what works for me—with honesty and heart.
All success is from Allah Almighty. I am nothing without His will. ♥️

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