1. Just take 1% profit from each trade 2. Limit losses (risk) by betting the profit results 3. Discipline 4. Consistency 5. Repeat from number 1
Example: Capital $1,000 (only input the amount of capital you are ready to lose)
The safe limit I use is 10x leverage which means the maximum buying power is $10,000, do not make trades exceeding $10,000.
Why 10x? With 10x leverage, it means the loss limit (margin call) is at -8% to -10%. In the current market condition, I consider that the average market fluctuation is a maximum of 5%-6%, certainly this is still safe from margin call and on the other hand, we have a very large profit opportunity (buying power).
Risk : Reward = -10% : Infinity.
TAKE THE FIRST PROFIT
In the first trade, you can bet all your assets (see the example capital above).
I believe you are very smart, look for assets that are unlikely to fluctuate more than 10% against your position.
If you want to succeed, you must take profits on the first trade. Mandatory.
LIMIT RISK ONLY TO THE PROFIT RESULTS
For example, your profit from the first trade is $100. Then your capital becomes $1,100.
In the second trade, limit your losses to only $100. Do not bet everything, your market condition and psychology must be different compared to the first trade.
The question is, is it difficult to make a profit of $100 from $10,000 (10x leverage)? That is only 1%, please answer for yourself.
The key is Discipline and Consistency in facing market fluctuations.
REPEAT UNTIL YOU BECOME RICH. $VIC $IP
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