@jlewis213 on BTCUSD | PriceONN Community
Risk management is not just about stop losses; it's about position sizing relative to your account. I never risk more than 1-2% of my capital on any single trade, regardless of how certain I am. Even the best setups can fail. Preserving capital is the name of the game; consistent gains compound over time. This approach allows me to weather losing streaks and stay in the market.
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I also use trailing stops to lock in profits as the price moves in my favor. It's a dynamic approach that adjusts to market conditions. For instance, I might set a trailing stop a few hundred dollars below the current price to protect my gains while still allowing the trade room to breathe. It's crucial to find the right balance; too tight, and you risk getting stopped out prematurely; too wide, and you give back too much profit.