Risk Management
You need to have a clear plan and strictly adhere to it, correctly calculate how much you are ready to lose and gain, identify exit points for each asset.
Allocate a certain budget as a whole for this type of activity, distribute it correctly. For example, leave 25% exclusively for investment, and 10% exclusively for trading, try to stick to these values and play only in their volumes.
Remember that the more you risk, the more you can potentially lose, the volume of your money supply will decrease and it will be more difficult to return it.
Set aside a separate part of the capital in the amount of 15-25% (At your discretion). You never know when you will need it urgently to be used for hedging or averaging.
Always be sure to expose StopLoss's and stick to them! For example, if you want to set StopLoss at 50% for a trade, stick to it constantly, you can also set StopLoss based on technical specifications and schedules. StopLoss's are very good at minimizing risks and giving you the opportunity to save your capital.
The loss of 20% requires only 25% increase, but the loss of 60% requires 150% increase, remember this.
You have to understand when it is necessary to fix the profit. In analogy to StopLoss, "there is a concept of StopProfit, make a plan to make a profit and stick to it. For example, if you are looking for a 20% return on investment, sell as soon as there is 20%. Another way to lock in profits is to trim your position. For example, if I bought 5 assets, and I limited myself to a StopProfit of 35%, then I would sell only 3/5 of my assets at the moment of 35% to protect myself. If you are trying to wait out an event to see how much it will bring, set stops for this as well. For example, if your position has increased by 50% and you want to see if you can earn more, move the stop loss by 30%. If you have a 100% return on investment and you want to survive, set the stop profit at 70-80%.
You are always in reality, Not always everything will go rosy and successful, be able to correctly assess the situation and act according to your plan, it is necessary that you earn more than you lose. Be able to protect your profits and finish playing on time, small constant gains will gradually lead you to growth, you will gain experience and increase your capital quite seriously. Also be prepared that if you play risky, one day you may be overtaken by a rainy day, you should take it normally
Never enter the stock exchange being on emotions! It is normal to feel satisfaction and confidence with success, or adrenaline with failure, but do not make yourself a victim of your own emotions, the market reacts to this very quickly and lowers you!
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