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?
First of all I would like to say about stocks and crypto wont really be the same thing since both fields do really have different volatility when it comes to their prices. 2% rule would be good in using it up either on forex or stocks but those kind of stop losses wont really work anytime here on crypto yet price can swing into higher percentage which would really trigger that SL so easily.Even on having 10% would still be on danger.