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1) I think this is a prudent moment to talk about leverage and #BTC ;
Most new traders use leverage to increase their position size,
Experienced traders use leverage to increase their buying power.
Here's a breakdown;
Most new traders use leverage to increase their position size,
Experienced traders use leverage to increase their buying power.
Here's a breakdown;
2) When planning a trade, one of the first steps is deciding how much to risk.
The most widely accepted method for determining risk is to use a % of your total account balance,
eg. $10,000 account, risk less than <3% per trade = <$300 max loss per trade;
The most widely accepted method for determining risk is to use a % of your total account balance,
eg. $10,000 account, risk less than <3% per trade = <$300 max loss per trade;
3) Most new traders ignore this, and go straight to "how much can I buy with the leverage at 10x?, 20x?, 100x?, etc.
Where as experienced traders use an amount where the max loss on that position represents their predetermined risk per trade amount;
Where as experienced traders use an amount where the max loss on that position represents their predetermined risk per trade amount;
