Hello community! The most important point in the crypto world is not how much you earn, but how much you don't lose.
Avoid financial collapse in trading (risk management)
"The golden 1% rule: How to protect your portfolio from sudden crashes (don't ignore it!)"
Many new traders risk large amounts in a single trade, leading to "liquidation" or heavy losses at the first violent price movement. The solution is simple and called the "1% risk rule":
🔑 What is the 1% rule?
You should not risk more than 1% of your total portfolio in any single trade.
Practical example: If the total value of your portfolio is $1000.
The maximum risk in any trade is $1000 \times 1\% = $10 only.
100 consecutive losses: To lose half of your portfolio (50%), you would theoretically need 50 consecutive losing trades! This gives you a huge room to learn and improve your strategy without going bankrupt.
Maintaining capital: This ensures you stay in the market even in the toughest conditions.
Don't let greed destroy your portfolio. Start trading safely!
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