Trading Principle 1: Risk Control & How to Estimate the Amount of Investment in Transactions
1. If your transaction displays the liquidation price on Binance’s order book, it means you have invested too much and the risk is high.
2. Do not use the 25%, 50%, and 75% of the Binance client to place orders. We call them the leek shortcut keys. Try to use TV's long and short tools to calculate the order quantity. (The Binance client can also switch to Tradingview and use the long and short tools)
3. R&R is at least 1:2, usually 1:3. If it is less, just scalp. This can ensure that in 10 transactions, you will lose 8 times and win only 2 times, and you will not lose money or even lose money.
4. Under normal circumstances, 1-2% of the capital size is used as risk margin, but if the capital is particularly small, 5-7% can be used. In no case should it exceed 10%.
5. Do not trade in revenge, that is, if one party loses money and immediately re-enters, the winning rate of this kind of transaction is extremely low.
6. Do not continue trading after TP. You can usually reach your TP, which means that the rise and fall of the market has a fatigue value. The profit of continuing to trade is small, and the risk of betrayal is high.
7. Stop loss must be set. Our signal cannot update the stop loss line in the square in real time, and we will often move the stop loss position, so it is not provided in the signal. You need to calculate it yourself. But we have a stop loss. Otherwise, it is not impossible to make money 100 times in a row and lose it all in one transaction.