โ A professional plan for capital management for beginners and intermediates:
1. ๐ฐ Determine the total capital for trading
Do not use all your money. Allocate only what you can afford to lose without affecting your life (such as 5% โ 20% of your savings).
Example:
If you have $1,000, allocate only $200 for trading.
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2. ๐ How much do you risk in each trade?
The golden rule: Do not risk more than 1% โ 2% of the total capital in a single trade.
Example:
If your capital is $200 โ the risk in each trade = only $2 to $4 (potential loss).
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3. ๐ฏ Risk to Reward Ratio
Each trade should have a target greater than the stop loss.
Ideal ratio:
โ Profit target of 2ร or 3ร against the loss.
Example:
If you are going to lose $5 in the trade, the target must be $10 โ $15.
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4. ๐ง Diversify trades
Do not put all your capital into one coin.
Example of capital distribution:
40% large coins (BTC, ETH)
30% medium coins
20% meme or new coins
10% liquidity (USDT)
