💭 How do you determine the ideal trade size based on capital and risk management?
📌 Many traders lose because they trade with a size that does not match their capital. Determining the correct trade size is crucial to protect your account and continue for the long term.
1. Always risk 1-2%:
Do not risk more than 1% to 2% of your capital in a single trade. For example, if you have $1000, you should not lose more than $10 to $20 in a single trade.
2. Calculate the trade size:
Before entering, determine:
- Where the stop loss will be
- The distance in pips or percentage - based on that, calculate the appropriate trade size using trading calculators or manually.
3. Do not increase risk to compensate for losses:
Even if you lose several consecutive trades, stick to the same risk percentage
📌 This principle protects you from rapid bankruptcy.
4. Gradually increase with capital growth:
As your account grows, you can gradually increase trade sizes, but with the same risk management rules.
💡 Remember: Managing trade size wisely is more important than searching for the perfect trade.
#RiskManagementMatters #xrpetf #CryptoTrading.
🎁 Next lesson:
How do you choose the right currency pair for stronger trading opportunities?
❤️ Follow me and leave a positive impact ❤️