✅ Capital Management Plan – #Spot #trading

1️⃣ Risk per Trade

Spot trading may not liquidate you, but big losses happen without discipline.

Risk only 2–5% per trade.

Example: $1000 capital → max loss $20–$50.

2️⃣ Capital Allocation

Never put all money in one coin.

• High-volume coin: 20%

• Medium setup: 10–15%

• Speculative trade: 5–8%

⚠️ Max 4–5 trades at a time.

3️⃣ Stop-Loss Rule

SL is mandatory even in spot.

Average SL: 5–12%.

If price drops 8–10% and breaks strong support → exit immediately.

4️⃣ Entry Strategy (Scaling In)

Avoid full entry at once.

• 40% at first support

• 30% at deeper support

• 30% on strong reversal candle

This improves average price & reduces risk.

5️⃣ Take-Profit Plan

• +5% → sell 25%

• +10% → sell 25%

• +15–20% → sell 50%

After TP2 → move SL higher.

6️⃣ Key Rules

❌ No averaging in clear downtrend

❌ Don’t lock all capital in one trade

✔️ Capital protection comes first