Post
Topic
Board Trading Discussion
Re: Ways to stay completely sane while trading crypto
by
OcTradism
on 24/01/2025, 02:43:10 UTC
You deliberately ignored the figures I gave, because I wrote about 3-5%, but you made the calculation based on the maximum value. If you calculate 3% of the deposit, the trader can make 33 unsuccessful trades. But you have to be a complete loser, who has no place in trading, in order to make only unprofitable trades) In addition, there is such a thing as Risk/Reward, according to which one successful trade must compensate for the loss of at least 3 unsuccessful trades. Every trader can reduce this percentage if they have enough capital, but even with $1,000, you are unlikely to open an order for 10 bucks.
Splitting capital to many small pieces is a good capital management for newbie traders. It helps newbie traders to reduce loss, and have many repetitions of trading, to practice what they learn and to experience in the market.

Splitting capital to 33 pieces, can give a trade more than 33 opportunities of practice trading. I assume that a bad trader does not lose 100% of 1 capital piece with a single trade. With this assumption, a trader with 33 capital pieces can have like 66, 99 or more trading opportunities.

Knowledge about the market, trading (fundamental and technical), and experience in the market are most important contributors for a trader success.