🛡️ Stop Losing Money! 5 Golden Rules of Risk Management 📉
Making profit in crypto is one thing, but keeping that profit is the real skill. Without proper risk management, your account could easily go to zero. Here are 5 essential rules every trader must follow:
1. The 1% Rule 📏
Never risk more than 1% of your total capital on a single trade. If you have $1,000, your maximum loss per trade should be $10. This way, you'd need to be wrong 100 times in a row to wipe out your account.
2. Always Use a Stop-Loss (SL)! 🛑
A Stop-Loss is your best friend. Before entering any trade, decide your exit point if the market moves against you. Trading without an SL is like driving blindfolded.
3. Maintain a Reward-to-Risk Ratio (RR) ⚖️
Always aim for trades where your potential reward is at least twice your risk (Minimum 1:2). For example, if you risk $10, your target profit should be at least $20. This strategy helps you remain profitable even if only 50% of your trades are successful.
4. Diversification (Don't All-In!) 🧺
Never put all your capital into a single coin, no matter how promising it seems. Spread your funds across different assets like $BTC, $BNB, and stablecoins to mitigate risk.
5. Control the FOMO 🧠
Avoid making entries when the market is showing strong green candles and everyone is getting excited. "Fear Of Missing Out" often leads people to buy at the top, just before a market correction.
What percentage of risk do you typically take on your trades? Share your thoughts in the comments below!
#RiskManagement #tradingtips #ProtectYourCapital #MarketRebound
