2022-01-19 03:45:59
From now on , always remember to take position in this manner to get profits in our trade
For example if stop loss is 6% away then multiply in such manner that it becomes 100% therefore 6% stop loss multiplied by 16.66 = 100%.
So if you are taking risk of 500$ per trade. Your total trade amount bought should be (500$ risk amount multiplied with 16.66x = 8000$ total buying amount). If stop loss is 6% So 8000$ worth coins will be bought.
If stop loss is 3% then 3% *33.3x = 100%
so total if risk amout 500$ = 500 * 33.33x = 16500$ total trade buying amount.
In this way your buying amount is adjusted by stop loss percentage%. But your risk amount will be same in every trade.
So incase stop loss hits , then your loss will be of only 500$ in every trade but when it acheives target 1st Then your profit will be more than 500$ & more bigger profits in 2nd - 3rd targets.
6. Common mistake in risk management , different different risk amount in different different trades.
Have good trading.
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