Why do some traders never lose their principal balance even during market fluctuations? 🤔
📌 Because they follow this strategy 🤗
1. Focus on stable currencies (#BTC / #ETH):
- High liquidity → faster order execution without significant slippage.
- Relatively less volatility compared to other currencies.
2. Strictly manage capital and open trades with (5% or less):
- Allows you to turn a losing trade into a winning one.
- Even if you lose 5 consecutive trades, you will not lose more than 25% of your capital ↓ you maintain your chances of recovery.
3. One trade at a time:
- Knowing a lot about the currency reduces your chances of losing.
- Avoid distraction and high risks → full focus on market analysis.
4. Quick closing (do not leave trades overnight):
- Protect yourself from sudden market shocks (like Elon Musk's tweet or interest news or whale manipulation).
5. Be content with small profits:
- 1-2% daily profit accumulates to 20-40% monthly! (thanks to compounding).
- Greed is the trader's number one enemy.
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🔥 Complementary tips to turn losses into profits:
1. Always use a stop-loss (Stop-Loss):
- Even if you bought with 5% of capital → do not allow a loss of more than 1-2% in the trade.
2. Do not try to "get revenge" on the market:
- If you lose a trade, wait 24 hours before entering again ↓ calm your nerves.
3. Learn to read "liquidity" in the order book:
- Look for accumulation areas (support/resistance levels) before opening the trade.
4. Benefit from daily fluctuations:
- Futures allow profit in both directions (buying or selling) → do not be biased towards one direction.
5. Keep a trading journal (Trading Journal):
- Note the reason for each trade → you will discover hidden mistakes to fix later!
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Real example 💡:
- Capital: $1,000
- Trade size: $50 (5%) with 5x leverage → exposing $250.
- Target daily profit: 1% of capital ($10) → achieved with a 2% price movement.
- After 20 successful trading days → a profit of $200 (+20%) without significant risk.
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Warning ⚠️:
- There is no magic strategy! Even with these rules, you may sometimes lose a little → discipline is the key to survival, and the important thing is to preserve your principal balance.
- Do not copy traders without understanding their strategy and ensuring the duration of opening and closing trades 🤓!
And finally 🤗
Share these tips so that as many people as possible can benefit.