Quote from: CryptoAssasin on September 25, 2018, 11:23:48 AM

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.

Great analysis mate! That made me realized that this the 2% rule is very effective and made me shake my head while smiling. I also do the math with my funds I trade at Binance and this thread enlightens me what is missing and why I lost a huge amount already. If I just use this strategy from the beginning, I may save some of those money I lost and minimize my greediness or maybe poor analysis.

Quote from: flying_bit on September 25, 2018, 04:00:33 AM

While browsing investopedia, I read about 2% rule where you will limit your loss to only 2% of your total capital.

Will this be applicable to crypto market? I always believe that you should wait for stock/crypto to gain atleast 20% to lock the profit but the 2% rule seems interesting.

I will try to use this method next time and will always keep this in mind. Thank you so much for sharing this! I just found the article and saved already on my bookmarks.

https://www.investopedia.com/terms/t/two-percent-rule.asp