🧐When you are just starting to invest in cryptocurrency, one of the most important rules is not to risk too much money in one asset. The idea is to limit potential losses to 1% of the total investment amount. This will help you maintain stability even in the face of unfavorable market changes.
Why should you stick to this rule❔
1. Minimizing risks: The cryptocurrency market is known for its volatility, and even experienced traders often face significant losses. By limiting losses to 1%, you can stay afloat during short-term market declines without losing all your capital.
2. Psychological comfort: Losses can significantly affect your psychological state, especially if you are a beginner. By limiting losses, you will feel more confident and will be able to continue investing with a clear head.
3. Long-term strategy: Periodic losses are a normal part of investing, especially in volatile markets. If you stick to the 1% loss rule, even in the face of setbacks, your capital will remain stable enough to recover over time and start generating profits.
✅Who gives this advice?
This advice about 1% is mentioned in the books of Alexander Elder ("How to Trade and Win on the Stock Exchange") and Van Tharp ("Trade Your Way to Financial Freedom"). This is a risk management rule.
📝
By limiting losses to 1%, you create a safe financial strategy for yourself and reduce the risk of significant losses, which is especially important in highly volatile cryptocurrency markets. By following this principle, you can avoid major mistakes and move towards more stable and profitable investing. 💡
#криптовалюта #Investing #Риски #Трейдинг #ФинансоваяСтратегия