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.
Any insight? Anyone using this strategy?
2% rule is applied for traders who do not want to take much risk which is a good plan in trading but at the same time rewards will be less, if you want to keep SL at the lower leven then your position should be lesser if you take big position then 2% risk can be covered at a nearby price which may easily be hit, for lower position you profit will also be less.