dhruv gupta | Technical Analyst ₿ | Traveller 🗺

dhruv gupta | Technical Analyst ₿ | Traveller 🗺

02-10-2021

08:26

Why to Risk only 1-5% per trade ? The main reason is.... No one wins every trade, and the 1-percent risk rule helps protect a trader's capital from declining significantly in unfavourable situations. If you risk 1 percent of your current account balance on each trade, you would

need to lose 100 trades in a row to wipe out your account. If novice traders followed the 1-percent rule, many more of them would make it successfully through their first trading year. Example : Suppose your capital is $10,000 and with 1% rule here your risk will be $100.

We are going to use simple formula to decide final amount. Amount to borrow = Risk / Stoploss % $2000 = $100 / 5% You can borrow $2000 for this trade or take 20x leverage (20 = 2000 / 100). How to apply this non Leverage trade ? It is simple ...

Amount to Invest = Risk / Stoploss % $2000 = $100 / 5% You will invest $2000 and 5% Stoploss. So on any given trade you would loose only 1% of capital or you will make 1%-3% of capital in single trade.

And investing only 1% per trades makes you sleep better without any worry knowing fact that you are going to loose only 1% of whole capital or make 2%-5%. Even with $100 you can risk 5% and make good money end of the month. $100 = risk $5 / SL 5%

you will end up making $10 - $25 per trade or you will loose $5. To become profitable you need to target ABOVE following winning % 33% winning rate to hit breakeven by 1% Stoploss & 2% Target. 25% winning rate to hit breakeven by 1% Stoploss & 3% target.

You need winning rate above 33% or 25% to become profitable. If you manage to make 30% gains per month within a year your account would compound from $10,000 to $232,981/- THIS IS HOW PROFESSIONALS TRADE !!!! #Bitcoin #cryptocurrecy #cryptoindia


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