🛡️💰 I blew up $600 ignoring position sizing. It’s the one skill separating surviving traders from blown accounts. Never risk more than 1-2% of your capital per trade.
Real numbers: You have a $1000 account. Your max risk per trade: $1000 * 0.02 = $20. Now, say your BTC futures stop-loss is $100 away from your entry. Your position size is max risk / stop-loss: $20 / $100 = 0.2 BTC. You only open a 0.2 BTC position, regardless of your platform's leverage options.
This prevents blowups. If you hit your stop-loss, you lose just $20. You can lose 10 trades consecutively and still have $800 (80% of capital) left. Compare that to risking $100 per trade and getting wiped out in 2-3 losses. This keeps you in the game. Calculate this before *every single trade*.
#PositionSizing #RiskManagement #FuturesTrading #TradeSmart #BinanceSquare
Real numbers: You have a $1000 account. Your max risk per trade: $1000 * 0.02 = $20. Now, say your BTC futures stop-loss is $100 away from your entry. Your position size is max risk / stop-loss: $20 / $100 = 0.2 BTC. You only open a 0.2 BTC position, regardless of your platform's leverage options.
This prevents blowups. If you hit your stop-loss, you lose just $20. You can lose 10 trades consecutively and still have $800 (80% of capital) left. Compare that to risking $100 per trade and getting wiped out in 2-3 losses. This keeps you in the game. Calculate this before *every single trade*.
#PositionSizing #RiskManagement #FuturesTrading #TradeSmart #BinanceSquare