$ETH Positioning to Control Risk, You Must Learn

Many people ask me: "Bro, how do I allocate positions and control risks?"

To be honest, these two questions are fundamental skills that every retail investor must learn.

If you can't even get these two points right, trading cryptocurrencies is like playing with fire.

How to allocate positions?

In simple terms, don't put all your eggs in one basket. When you first start, your position should not exceed 30%.

Keep the remaining 70% aside, and add to your position once you confirm the market trend. This way, if the market fluctuates, your losses won't be too significant.

As you gain more experience and your account grows, you can increase your position to 50% or higher, but never go all-in or heavily invested.

Before each trade, you should ask yourself: Is this trade worth it?

How to control risk?

This is where stop-loss comes into play; stop-loss is your insurance. Before each operation, set your stop-loss point.

If the loss exceeds the predetermined range, exit immediately without hesitation. Keeping losses manageable helps maintain a stable mindset.

If one trade incurs too much loss, the entire account will be greatly affected, so the allocation of positions must be reasonable.

Those who don't like to use stop-loss have already been severely impacted by ETH's recent market trends.

And the person below listened and, after I told him about switching support and resistance, changing trends, he immediately set a stop-loss and went long! He profited 🥩

Each trade's loss range should be set, and once reached, exit without delay.

In simple terms, these two points are like your "seatbelt" in trading.

If you control your position and stop-loss well, you won't fear market crashes or surges, and you'll be able to stand firm in the cryptocurrency market.

Remember: Don't be greedy, don't be afraid, think through every step before you act.

Follow the rhythm, take your time; only when you're steady do you have a chance to turn things around.