Mastering Risk Management: The 1% Rule in Crypto Trading 🛡️📈**

Most traders fail not because they don't have a good strategy, but because they don't know how to manage their capital. If you want to survive and profit in this volatile market, you must master the **1% Rule**.

**What is the 1% Rule?**

It simply means you should never risk more than **1% of your total account balance** on a single trade. If you have a $1,000 account, your maximum loss on any trade should be $10.

**How to Calculate Your Position Size:**

Many beginners confuse "Position Size" with "Risk." If you have $1,000 and you buy $100 worth of BTC, your position size is $100. If your Stop Loss is 10% away from your entry, you are risking $10 (which is 1% of your $1,000).

**Why This Works:**

1. **Survivability:** To blow your account, you would need to lose 100 trades in a row.

2. **Emotional Control:** When you know exactly how much you might lose, you don't panic during market fluctuations.

3. **Recovery:** It is much easier to recover a 1% loss than a 50% loss. To recover a 50% loss, you need a 100% gain just to get back to zero.

**Pro Tip:** Always set your **Stop Loss (SL)** before you enter a trade. In a market where BTC can drop 5-10% in minutes, trading without an SL is gambling, not investing.

**Key Takeaway:** Focus on protecting your capital first. The profits will follow. Successful trading is a marathon, not a sprint.

**How much do you risk per trade?**

1%, 5%, or are you going "All-In"? Share your strategy in the comments! 👇

#TradingTips #RiskManagement #CryptoEducation #BinanceSquare #SmartTrading #Web3 #learnAndEarn