Are your trades putting your portfolio at risk? Itâs time to master the 1% Rule and trade smarter, not riskier!
đ What is the 1% Rule?
The 1% Rule means you should never risk more than 1% of your total portfolio on a single trade.
đĄ How to Apply the Rule:
1ïžâŁ Calculate Risk: Risk Amount = Portfolio Ă 1%.
Example: $10,000 portfolio â $100 max risk per trade.
2ïžâŁ Set Stop-Loss: Automatically limit your loss if the trade goes against you.
Example: Enter at $30,000 BTC, set stop-loss at $29,800 to cap the loss at $100.
3ïžâŁ Adjust Position Size: Match the size of your trade to your risk tolerance.
Formula: Position Size = Risk Amount Ă· (Entry Price - Stop-Loss Price).
đ„ Why Follow the 1% Rule?
Protects your capital from major losses.
Reduces emotional decision-making.
Keeps you trading consistently, even during losing streaks.
â Start implementing the 1% Rule today and take control of your trades.
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