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?
I think that this rule is more applicable to forex. However, in the market of cryptocurrencies, you can apply this rule by slightly changing it. For example, as a rule, I open a position for an amount not exceeding 5% of the total amount of the deposit and set the stop loss not more than 10% of the open position.