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 " hold " and gain 20% is for people who use investment strategy not trading, specially day trading. Wrong rules can make you loss so please think again to set your stop loss and take profit point. You can use any gain ( % ) in your setting but I afraid must fit with your strategy. I believe 2% is possible for daily trading but in down trend investment strategy is more helpful.