$BTC Risk & strategy (position sizing, stop-loss, take-profit, avoiding overtrading)

Risk & Strategy Basics for Trading

Good trading is mostly about risk control, not just finding “winning coins.”

1. Position Sizing

Never put all your money into one trade.

A common beginner rule:

Risk only 1%–2% of your total account per trade.

Example:

Account = $100

Risk per trade = 2%

Max loss allowed = $2

If your stop-loss is 5% away, your trade size should match that risk.

Formula:

Position Size=Account RiskStop Loss %Position Size=Stop Loss %Account Risk​

Simple example:

Risk = $2

Stop-loss = 5%BitcoinETFsShed$1.26BInSix
#BitcoinBreaksBelow75KAsWarshTakesFedHelm

20.05=400.052​=40