Day 11/20
Understanding Risk Management
One key thing I’ve learned:
👉 You don’t need to win every trade to be profitable.
What really matters is how you manage your losses and profits.
Here’s what I’m practicing:
• Risk a small percentage per trade (1–2%)
This means even if a trade goes wrong, it doesn’t damage your account too much.
• Use a stop loss
A stop loss helps you exit a trade automatically if the price moves against you.
• Aim for a good risk-to-reward ratio
For example, risking 1 to make 2 or more helps balance losses over time.
• Avoid emotional decisions
Sticking to a plan is more important than reacting to the market.
Even when analyzing coins like Bitcoin, I’m realizing that protecting capital is just as important as finding good entries.
Understanding Risk Management
One key thing I’ve learned:
👉 You don’t need to win every trade to be profitable.
What really matters is how you manage your losses and profits.
Here’s what I’m practicing:
• Risk a small percentage per trade (1–2%)
This means even if a trade goes wrong, it doesn’t damage your account too much.
• Use a stop loss
A stop loss helps you exit a trade automatically if the price moves against you.
• Aim for a good risk-to-reward ratio
For example, risking 1 to make 2 or more helps balance losses over time.
• Avoid emotional decisions
Sticking to a plan is more important than reacting to the market.
Even when analyzing coins like Bitcoin, I’m realizing that protecting capital is just as important as finding good entries.