Risk management and Emotional discipline while trading Spot Trading on Binance:
1. Risk Management
Position Sizing:
Only use a portion of your capital (e.g., 10-20%) on a single trade.
Diversification:
Don’t put all your funds in one asset. Diversify across multiple assets to spread reduce risk.
Use the 1% or 2% Rule:
Never risk more than 1-2% of your capital on a single trade.
Set Daily Loss Limits:
Decide in advance how much you’re willing to lose in a day, and stop trading once you hit that limit.
2. Emotional Discipline
Control Emotions:
Don’t let greed or fear drive your decisions. Stick to your strategy.
Avoid Overtrading:
Too many trades increase fees and the chance of errors.
Stick to Your Plan:
Follow your strategy and avoid making impulsive changes.
