Structural risk management and portfolio distribution using the (50-30-20) system
Successful trading is 20% technical analysis and 80% strict risk management. For new traders, entering the current market requires precise financial engineering of the portfolio.
We suggest adopting the (50-30-20) model: Allocate 50% to leading currencies (BTC and ETH) due to their relative stability, 30% to mid-cap and promising project currencies, and 20% remains as cash liquidity (USDT)
To seize opportunities from sudden crashes created by volatility. The current situation requires us to monitor the "dominance rate"; if Bitcoin's dominance is stable or slightly decreasing, this paves the way for Layer 2 coins and alternative currencies to take off.
The technically best entry point is touching the main "uptrend line" with confirmation from the stochastic indicator. Do not use high financial leverage initially.
Staying in the market for a long time is more important than quick profits that may end up with account liquidation. Always aim for a risk/reward ratio of no less than 1 to 3 to ensure sustainable capital growth.
