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Minor pullback and once again pushing to break 3300 I do not mind taking a long here. Held up overnight, market appears to want to rally once again, been relentless, not going to fight momentum and buyside action.
I want to emphasize for those new to the site 1% risk implies the amount of capital we are risking for the trade. IF you have a 20k trading account the risk would be 1% of that or $200. You take this and calculate from there your position size.
How you calculate is Risk / (Entry Price – Stop Loss) = Position size
For this example it would be 200/(3350-3150) = 200/200 = 1 share or 1 coin in this case. It is not about hitting home runs it is about managing risk no different than at a poker table. IF you go into a poker room with all your money your risk is all your money.
Can you adjust the risk? Sure you can, depending on your financial means and the aggressive nature of your trading, however with that said 3% is the maximum you want to take for a trade IMO. And not just my opinion, 1-2% is standard for professional traders. The goal is not to hit a home run, but to minimize your capital losses if you are wrong. $200 loss on a 20k trading account is NOT the end of the world. Goal is to make $400-$600 while risking $200.
The habits you form with smaller accounts will ultimately be the habits you have as your account grows.
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