#XRPETF $XRP
How do you determine the ideal position size based on capital and risk management?
📌 Many traders lose because they trade with a position size that is not suitable for their capital. Determining the correct position size is crucial to protect your account and continue for the long term.
XRP
2.2274
+1.24%
$BTC
$BTTC
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 position size:
Before entering, determine:
- Where the stop loss will be
- The distance in points or percentage - based on that, calculate the appropriate position 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 quick bankruptcy.
4. Gradually increase with capital:
As your account grows, you can gradually increase position sizes, but with the same risk management rules.
💡 Remember: Managing position size wisely is more important than searching for the perfect trade.