đĄïž Risk Management Formula for Beginners â So You Donât Blow Up đ§ đ„
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âHow much should I risk?â
âWhere do I put stop-loss?â
This post will save beginners money and stress.
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đȘ Step-by-Step Risk Management
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â Step 1: Decide Your Max Risk Per Trade
đč Beginners = 1%
If you have $500 â never risk more than $5 on a trade.
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â Step 2: Find Entry + Stop-Loss Distance
Example:
âą Entry: $1.00
âą Stop-loss: $0.95
âą Risk per coin = $0.05
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â Step 3: Use the Formula
Position Size = Max Risk Ă· Risk per Coin
Using the example:
âą Max risk = $5
âą Risk per coin = $0.05
â $5 Ă· 0.05 = 100 coins
This is how pros do it â
No guessing, no over-leverage.
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â Step 4: Always Use a Stop-Loss
Donât say âIâll exit manually.â
Thatâs a trap.
Set your SL before you enter â every single time.
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â Step 5: Reward Must Be > Risk
Risk: $5
Target: $10 or more
â Thatâs 2R = Solid system
Never enter a trade unless it gives you at least 1.5x your risk.
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Want to stay in the game long enough to win?
Master risk first, profit comes next đ