Risk Management

Effective risk management is essential for long-term success in crypto trading.

Position Sizing: - Never risk more than 2-5% of portfolio per trade - Scale into positions gradually - Use proper leverage ratios

Stop Loss Strategies: - Set stop losses before entering trades - Use trailing stops for winning positions - Avoid moving stops to avoid losses

Portfolio Management: - Maintain cash reserves - Rebalance regularly - Track all positions and P&L - Review performance periodically