#SwingTradingStrategy
Capital management is one of the most important elements of success in cryptocurrency trading, especially in light of the sharp fluctuations that characterize this market. Good capital management relies on determining the risk percentage in each trade, which usually does not exceed 1-2% of the total portfolio. It is also recommended to use stop-loss orders to protect capital from sudden crashes.
Effective strategies also include: dividing capital into small parts and distributing them across several currencies instead of fully investing in a single asset. This helps to reduce risks arising from an unexpected move of one currency.
Additionally, realistic profit targets should be set, and one should avoid greed or emotional trading. Keeping a trade journal helps in analyzing performance and identifying mistakes.
In the end, capital management is not just a means to reduce losses; it is a strategy that helps traders stay in the market for as long as possible and achieve sustainable profits in the long term.