Capitalization is one of the fundamental issues that significantly affect the trader's survival in this field or not, as well as the ratios of profits received and losses incurred, which may be doubled due to the lack of wise management of capital, whether large or medium
As everyone knows that trading is a trade there is a possibility of profit and loss.
Deleting from the capital first is the reduction of risks, in addition to achieving the greatest gains and theoretically as a simple definition is the risk or the transaction by a percentage of capital in return for the biggest profit in the sense of starting from the background of I risked a small amount of money in order to make another profit.
This is to capitalize in a professional way, especially in a volatile market such as the digital currency market.
- It has nothing to do with the capital of the analysis, whatever its kind - technical - basic - digital because I will not only win a good capital appreciation and then enter my deals randomly on the belief that I will win and this is wrong,
- Stop loss and the best ratios as I always say is 4%. Returning to the previous point you will find that if your technical, technical and basic studies are good, you will find that the stop loss has been done and after the evaluation, which is better to be monthly for the deals you will find that 70 % Of transactions were often successful when we were studying a particular currency and for example setting a point of entry, especially on the basis of data available to you, the market will often follow your expectations and as a stop loss ratio,
There is, of course, a difference in capital inflow between small cap capital ($ 100- $ 2000), medium (2001- $ 15k) and large ($$$$$)
But what brings together all is that I do not put all the eggs in one basket, that is to leave any transaction with any capital even if my analysis indicates high rates that this currency will rise and I will stop the loss It would be good if you are a newbie and a small capital to take the amount Which started with a tax for learning, but a large adventure may blow the capital of my capital and divide my capital into three parts of the Scalping any quick deals with a stop loss less than 4 percent to keep the capital for as long as possible in which I try and implement all the strategies that I had previously learned and part of the storage in the short term from two to two months as I kept on W Emergency and surprises may occur and the need to strengthen the former My Position
For medium people, I recommend starting the distribution of capital on several platforms and working centrally on storage strategies with a stop loss rate of 6% to 10% and up to 15% which we will talk to in the next few days, God willing, but the deals of Scalping must be entered in high percentages of the part Which is allocated to it more than the past, especially after gaining experience + reduction of the stop loss so as not to lose a lot and in return I try to profit more than that to increase profit margin almost content and more important to provide part of the profits of another profitable project is mining.
As for the owners of the capital, the big money (people know the job ) and I do not think they need my humble advice
Good points and read. However, I would like to say that I cannot really support the idea of having a "perfect" trading scheme. It would be close to impossibility to assume such feat from happening because the cryptomarket has always been unpredictable and filled with so many movements and changes that may abruptly happen. Also, the volatility of the values of the coins come into play during trades, that sometimes, even if you studied everything there is to it, there would still be loses along the way. And, I think that's part of the system of trading, as you lose in some trades, you get valuable experience that may teach you stuff that trends may not tell you; it also gives you that "gut feeling" if a trade would go as planned or not.
