Hello, Crypto Team From Scratch! We have talked about security (Stop-Loss and Take-Profit), but the most powerful tool for an investor is not in the app, it is in your mind! It is Capital Management.
Many people invest $100 and use it in a single trade. If that trade goes wrong, they lose everything and get frustrated. The key is to survive the bad days.
🛑 The Concept: Risk per Trade
Capital Management can be summarized in one question: How much of my total capital am I willing to risk on A single trade?
The answer that all professionals use is: Never more than 1% of your total capital!
The 1% Rule
This rule is your protective shield. It doesn't matter if your trade is perfect or disastrous, if you follow this rule, you will never go broke.
Key formula:
\text{Maximum Loss per Trade} = \text{Total Capital} \times 0.01
Practical Example
Imagine that your total capital in the Spot Wallet is $1,000 USD.
* Maximum Risk per Trade:
1,000 \times 0.01 = 10 \text{ USD}
This means that, no matter what happens, your Stop-Loss (SL) must be set so that the maximum loss does not exceed $10 USD.
* Consequence: If you have 10 consecutive losing trades (a very bad streak), you will have only lost $100 USD (10% of your capital), and you still have $900 USD left to recover.
> ❌ THE NOVICE MISTAKE: Betting $500 of a capital of $1,000. If you lose, you have $500 left, and you need to double that money just to get back to where you started!
🛡️ The Importance of Discipline
Why is this rule so strict?
* Emotional Protection: By risking so little, losses don't hurt as much. This allows you to think rationally, instead of trading out of panic or revenge.
* Survival: You need many consecutive losses to go broke. If you lose 50% of your capital in a single trade, it is almost impossible to recover.
* Composition: When you win a trade, your total capital increases, so the 1% risk of the next trade will be slightly larger, growing compounded.
Capital Management is more important than any technical indicator. Set a rule and do not break it!
🎯 FOLLOW ME and COMMENT! If you have $500 USD in your Spot Wallet, what is your maximum risk (1%) per trade? Calculate!
#Write2Earn #GestionDeCapital #ReglaDel1Porciento #TradingDisciplinado
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