@Plume - RWA Chain
Managing losses in cryptocurrency trading is one of the most important skills for long-term success. Here are 7 key strategies to help you minimize and manage losses effectively 👇
🧠 1. Set a Stop-Loss for Every Trade
Always decide the maximum loss you can tolerate before entering a trade.
Example: If you buy Bitcoin at $60,000, you might set a stop-loss at $58,500 (2.5% loss).
This prevents emotional decisions and protects your capital.
📊 2. Risk Only a Small Percentage per Trade
Follow the 2% rule — never risk more than 2% of your total portfolio on one trade.
If your total capital is $1,000, your max risk per trade is $20.
This keeps you safe even if multiple trades go wrong.
📉 3. Use Position Sizing
Adjust the amount you invest based on the volatility of the coin.
High-volatility coins = smaller position size.
Stable coins or strong projects = can take slightly larger positions.
💵 4. Diversify Your Portfolio
Don’t put all your funds in one token.
Hold a mix of top coins (BTC, ETH) and strong altcoins to spread risk.
Avoid investing in too many coins — 5–8 is ideal for control.
⏳ 5. Avoid Overtrading
Too many trades = more fees + more emotional stress.
Stick to a few high-confidence setups and wait for your signals or patterns.
Remember: “No trade” is also a valid position.
😌 6. Control Emotions (Fear & Greed)
Use logic, not emotion.
When price drops, don’t panic-sell — follow your stop-loss rules.
When price pumps, don’t FOMO (fear of missing out) — plan your entries.
📈 7. Use a Trading Journal
Record every trade: entry, exit, reason, and result.
Review weekly to find patterns in your mistakes.
This helps you grow from losses instead of repeating them.
