📉✍️ I blew $600 because I traded without a plan. Learn from my mistake V1.0 – a simple plan saves you from emotional market meltdowns.
Here are 5 basics. First, **Entry Criteria**: *exactly* when you'll trade. E.g., "Long BTC if it breaks $70,000 resistance." Second, your **Stop Level**: your absolute max loss point. Mine's 0.5% below entry, like $69,650 on that $70k long. Third, **Target**: your profit goal. I aim for 1:2 risk/reward, so $70,700 here. Fourth, **Position Size**: calculated from your stop and max risk. If my max risk is $100, that's a $20,000 notional BTC position. Fifth, **Max Daily Loss**: your hard stop for the day. Never exceed 1% of total capital, perhaps $200 total. Writing this down *before* trading is crucial. It stops emotional impulses – greed, fear – that cost...
Here are 5 basics. First, **Entry Criteria**: *exactly* when you'll trade. E.g., "Long BTC if it breaks $70,000 resistance." Second, your **Stop Level**: your absolute max loss point. Mine's 0.5% below entry, like $69,650 on that $70k long. Third, **Target**: your profit goal. I aim for 1:2 risk/reward, so $70,700 here. Fourth, **Position Size**: calculated from your stop and max risk. If my max risk is $100, that's a $20,000 notional BTC position. Fifth, **Max Daily Loss**: your hard stop for the day. Never exceed 1% of total capital, perhaps $200 total. Writing this down *before* trading is crucial. It stops emotional impulses – greed, fear – that cost...