Capital management is the key to survival in the market, especially if you trade daily. Any trader, no matter how skilled, will be exposed to sudden repercussions and news events that they hadn't calculated, which will affect their trades and portfolios (such as an unexpected military strike or a quick, strong, and surprising news story). Our market, as you know, reacts to such news with a 20% drop.
The solution is simple:
I will teach you the correct way to trade in general, and you can apply it to your portfolios if you can.
First, a trader must have the largest possible capital. The more capital you have, the greater your profit margin will be, and the less risk you will have on each trade.
Second, do not risk more than 2-3% of your capital on any one trade.
In other words, only enter with a percentage of your total capital.
If your capital is $10,000, enter with only $300 per trade.
You are allowed a maximum of 5 open trades, with the total maximum of all trades. 15-25% of your capital
Of course, all of this is only for your speculative portfolio, because you'll be dividing your capital into three sections:
50% for your investment portfolio for strong projects
40% for your speculative portfolio, which we discussed risk management in
10% for an emergency section to hedge against anything that might happen (very important)
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