What’s risk management?
You can be the best technical analyst in the world, have the best insider information and still lose money if you don’t know how to control the risk you put on a trade.
I can write a book on this topic so I will just mention the most important things about risk management.
It is very important not to risk a big portion of your account. I suggest up to 3% which is the maximum and suggested only those with smaller account sizes. I am using usually 1% on most of my trades and never above 2%.
Why this is so important?
If you risk 10% per trade, after 3 losing trades, you’ll lose 30% of your account. At that time, you’ll forget everything. You’ll forget your rules, everything. The only thing you’ll be focusing is getting back your money. Because of that, you’ll risk even more and you’ll be just 2-3 losing trades from blowing up your account.
3 losing trades can happen even to the best traders so this should be avoided at all costs.
The second thing I would like to talk about is consistency. There’s a worse thing than taking a high risk and that’s taking inconsistent risk per trade. Never take 5% risk on a trade than 1% than 3%, 7%, 2% and so on.
This will lead to disaster!
You are actually hoping to win when you risk more and you focus on the luck factor. Even with an 80% win rate, you can be in loss trading this way especially knowing that we tend to make more mistakes when we take higher risk.
These are two things you should work on. There’s no technical knowledge that can justify taking a high risk. Go step by step, this is a business, not a casino. You should protect your capital then focus on making more of it!
You can be the best technical analyst in the world, have the best insider information and still lose money if you don’t know how to control the risk you put on a trade.
I can write a book on this topic so I will just mention the most important things about risk management.
It is very important not to risk a big portion of your account. I suggest up to 3% which is the maximum and suggested only those with smaller account sizes. I am using usually 1% on most of my trades and never above 2%.
Why this is so important?
If you risk 10% per trade, after 3 losing trades, you’ll lose 30% of your account. At that time, you’ll forget everything. You’ll forget your rules, everything. The only thing you’ll be focusing is getting back your money. Because of that, you’ll risk even more and you’ll be just 2-3 losing trades from blowing up your account.
3 losing trades can happen even to the best traders so this should be avoided at all costs.
The second thing I would like to talk about is consistency. There’s a worse thing than taking a high risk and that’s taking inconsistent risk per trade. Never take 5% risk on a trade than 1% than 3%, 7%, 2% and so on.
This will lead to disaster!
You are actually hoping to win when you risk more and you focus on the luck factor. Even with an 80% win rate, you can be in loss trading this way especially knowing that we tend to make more mistakes when we take higher risk.
These are two things you should work on. There’s no technical knowledge that can justify taking a high risk. Go step by step, this is a business, not a casino. You should protect your capital then focus on making more of it!
Forwarded from Crypto Signals
A monthly close is coming soon and we’re very close to see a very bullish sign for altcoins.
February is looking to be a great month for altcoins.
February is looking to be a great month for altcoins.
New highest weekly close is coming.
This can take us not only to $50k but much higher.
That’s the bullish scenario.
Bearish scenario is only if we get bearish engulfing on weekly and it requires next weekly close current weekly opening which is $38k.
Whatever happens, a new week is going to be wild!
This can take us not only to $50k but much higher.
That’s the bullish scenario.
Bearish scenario is only if we get bearish engulfing on weekly and it requires next weekly close current weekly opening which is $38k.
Whatever happens, a new week is going to be wild!
Crypto Signals via @vote
What’s most likely outcome?
anonymous poll
Move up! – 285
👍👍👍👍👍👍👍 64%
Move down! – 157
👍👍👍👍 36%
👥 442 people voted so far.
anonymous poll
Move up! – 285
👍👍👍👍👍👍👍 64%
Move down! – 157
👍👍👍👍 36%
👥 442 people voted so far.
ATH: There are now more 94,000 #Bitcoin addresses holding at least $1 million worth of $BTC.
The steep increase in mid December marks the point when BTC crossed $20,000 – making all early miner addresses (50 BTC rewards) millionaire addresses.
The steep increase in mid December marks the point when BTC crossed $20,000 – making all early miner addresses (50 BTC rewards) millionaire addresses.
Bitcoin is currently in price discovery mode.
Yeah we do have some hidden bearish signs (volume divergence and few more) but these signs could tell us that local top is close but it could be in week or two and it doesn’t tell us at which price.
Don’t act as you have crystal ball. This top could be today, or could be in 2 weeks at 60-70k easily.
Enjoy this move up!
Yeah we do have some hidden bearish signs (volume divergence and few more) but these signs could tell us that local top is close but it could be in week or two and it doesn’t tell us at which price.
Don’t act as you have crystal ball. This top could be today, or could be in 2 weeks at 60-70k easily.
Enjoy this move up!
Visa is developing a #Bitcoin API to allow bank customers to buy/sell and custody #Bitcoin through their bank’s app - Visa CEO says 🔥🚀
https://www.coindesk.com/visa-anchorage-crypto-apis-pilot-for-banks
https://www.coindesk.com/visa-anchorage-crypto-apis-pilot-for-banks