Quote from: haroldtee on September 25, 2018, 11:08:55 AM

You are getting yourself confused, it is not about earning 2% on each trade, it is about not entering a position with more than 2% of the total capital you have. I believe that should be explanatory enough for anyone. This would always make it easy for you to make trades without having to worry about how much impact it would have on your general holding as the case may be.

you mean if you have $2000, you will only trade $40 each day stock? okay, that makes sense.

Quote from: pawanjain

2% might just seem a little low and since many coins fluctuate at a higher level on a daily basis. Keeping such a lower value might end up eating your profits as well. For example: the coin went down by 5% resulting in executing your stop loss order and then the price goes up by 10% . You just lost an opportunity of making 5% gains on your investment.
I would recommend keeping the % value at about 5% - 7% .

I'm also thinking this but for me acceptable gain is 20% . I'm more of swing trader /long term holder. I try to catch crypto at low price and only start to sell when I see that it's on 20% gain but the rule of 2% makes sense though I think this is more applicable for day trader.

Quote from: CryptoAssasin

It looks effective but i am wondering how will that work. If i have $100 to invest then 2% would be $2. If i invest again the remaining $98 and i lost another 2% which is $1.96 then my remaining fund is $96.04. Well, not bad actually. It somehow save me $0.04 because if i let that 4% deducted to my $100 in one transaction, i lost $4 instead of $3.96 if i use the 2% rule. I confirmed that it will minimize the risk specially for those traders with big amount of money to trade.

Yes, base on the above explanation I think this is how it works.