Trading. Why is it so important for a trader to be a professional?
One of the most difficult ways to make money on cryptocurrencies, which requires certain knowledge and experience, is trading. Trading classic assets is an extremely difficult and not always profitable business. In the field of digital money, the risks are even higher, since the market can rise or fall by tens of percent per day. This often leads to the liquidation of hundreds of millions of dollars worth of positions on crypto exchanges.
To trade safely in any markets, you need to master risk management, in order to reduce the possibility of losing your deposit, you first need to determine the risk per transaction and be prepared for a series of unprofitable transactions.
The market is unpredictable, everything must be calculated. The risk per trade should be calculated as a percentage, since the increase in the deposit will increase the amount of risk in dollars. The larger the deposit, the lower the risk. Traders apply between 0.5% and 5%. With aggressive trading from 10% to 20%, but with such a risk "there should be a good feeling."
“When you clearly know how much you are risking in a deal, you can calculate the volume from market conditions. The calculation requires the expected price of entering the market and the price for placing a protective stop (you take the data from the chart after analysis). Target levels for profit fixing are set in a ratio of 1 to 2 and higher (loss / profit). Experience shows that the calculation of the lot volume from the stop is the most profitable.
To comply with the risks, you also need an appropriate deposit, otherwise you will have to increase the risk per trade in order to suit the profit. It is better to replenish the deposit monthly from other incomes until it becomes clear that trading brings sufficient income. It is important to achieve a stable result as a percentage of the initial deposit, the specialist concluded.