#CryptoIn401k How to Improve Trading Skills
Focus on understanding your psychological reactions during profit and loss.
3. **Strict Risk Management:**
* **Trade Size:** Do not risk more than 1-2% of your capital on a single trade.
* **Stop-Loss Order:** Always set it before entering the trade to protect your capital.
* **Risk/Reward Ratio:** Aim for trades where the expected profit is greater than the risk (e.g., 1:2 or higher).
4. **Continuous Analysis and Learning from Mistakes:**
* **Trading Journal:** Record every trade (the reason, target, stop, result, your psychological state). This is the most important tool for improvement.
* **Review:** Analyze your successes and failures weekly/monthly. What worked? What mistake did you make? How can it be avoided?
* **Post-Market Analysis:** Study market movements daily to understand their context.