Crypto markets are known for their rapid turns – prices can increase by 10% in minutes. This instability creates great opportunities, but also risks largely. Without proper risk management, even best traders can lose capital.
The first principle of risk management is never a risk to your trading capital more than 1-2% on the same business. This ensures that even if you meet many losses continuously, you still have enough money to get. Many early traders make the mistake of “in everything” based on publicity or signals on social media, just to see the portfolio accident overnight.
Another important tool is a stop-loss order. A stop loss automatically closes your business. If the value hits a certain level, it prevents further damage. For example, if you buy Bitcoins in $ 60,000, with a stop loss of $ 58,000, limit the loss to 3.3%. This simple habit protects your capital and holds emotions during examination.
Utilization of crypto trade has a two -edged sword. Although it can multiply the profits, it can also increase loss. If you are going to use influence, you can start small-2 x or 3x and always use it with a strict stop loss. Avoid using high gear (10x or more) until you have experience and a proven track record.
Finally, never consider the importance of a trading journal. Recording each business including entrance/exit points, business reasons and results, allows you to detect patterns in your performance. Over time you will learn what strategies work for you best and which people to avoid.
Remember that in crypto it is more important to protect your capital than to chase each pump. Successful traders focus on stability, discipline and long play.
Written by Midhat – Posted by Tradingblogshare.com