Most traders lose money not because of bad strategies — but due to poor risk management. In this part, let’s learn how to stay safe and profitable. 💼📉
💥 Why Risk Management Matters
Crypto markets are volatile — prices can swing 10%+ in minutes. Without risk control, one wrong trade can wipe out your entire balance.
🧠 5 Key Risk Management Rules:
1️⃣ Only Risk 1-2% Per Trade
If you have $1,000, don’t risk more than $10–$20 per trade.
2️⃣ Use Stop-Loss Orders Always
Stop-loss helps you exit automatically when a trade goes against you.
3️⃣ Avoid Over-Leveraging
High leverage = high liquidation risk. Stay at 2x–5x max unless you're experienced.
4️⃣ Diversify Your Trades
Don't put all your funds into one coin. Spread across different assets.
5️⃣ Never Chase Losses
Lost a trade? Don’t revenge-trade. Reset your mindset before entering again.
💡 Pro Tip:
Use Binance's "Position Calculator" before placing trades to understand risk, margin, and liquidation price.
🎯 Practice Task:
✅ Place a small Futures or Spot trade using:
2x leverage
Stop-loss
1–2% risk limit
📚 Next Up: P
art 6 — How to Build a Trading Strategy That Works 📊
