Day 4:
Hello! Good Morning Beloved Traders!
"Risk Management is what separates a Trader from a gambler!"
Yesterday we saw indicators (RSI, EMAs, Volume) to enter the market, but today we will talk about something more important: How NOT to come out DEFEATED! 😭
*In Futures Trading (especially in SHORTS of $BTC ), the market can be
volatile. An unexpected news 😵 can cause the price to rise by 5% in minutes. If you don't have a STOP-LOSS (SL), you could see your balance disappear.
*What is Stop-Loss? It is an Automatic Order that tells Binance: "If the price reaches this point against me, close the application immediately so that I do not lose more money!".
1% Rule (Risk Management Pro):
*Professionals never risk all their capital in a single trade:
.- The Rule: Never risk more than 1% or 2% of your total account in a single trade.
.- Example: If you have $1,000 in your Futures wallet, your Stop-Loss should activate when your loss reaches $10 or $20.
*How to set it up on Binance:
1. When opening your position (SHORT), you will see an option called "TP/SL".
Click and define your Stop-Loss.
Tip: Place the Stop-Loss a little above the last previous high (resistance). If the price exceeds that high, your bearish thesis is no longer valid, and it is better to exit with a small loss.
*The Danger of Cross Margin (CROSS):
If you use Cross Margin and do not set a Stop-Loss, a single bad trade can consume ALL the balance of your Futures wallet!
That's why, if you are a Beginner, always use Isolated Margin.
*Dynamic:
Be Honest... Have you ever traded without a Stop-Loss and then regretted it?
Tell me your experience in the comments.
"Let's learn from MISTAKES so we don't repeat them!"
#RiskManagement #StopLoss #TradingBasics #BinanceSquare #CryptoTips #WriteToEarn
Legal Notice: This is not Financial Advice, it is a Didactic and Educational plan. Trade at your own exclusive risk.