Position Sizing: The Secret to Surviving Crypto Volatility

"Don't put all your eggs in one basket." In trading, this means correct Position Sizing. It's the art of deciding how much capital to risk on a single trade.

The 1-2% Rule

Professional traders rarely risk more than 1-2% of their total portfolio on a single trade setup.

• Portfolio: $10,000
• Risk per Trade: $100 (1%)

R Risk

This doesn't mean you only buy $100 worth. It means if your stop-loss hits, you only lose $100. If your stop loss is 10% away from entry, you can buy $1,000 worth of the asset.

• 10% loss of $1,000 = $100.

Calculate your optimal size instantly with the Position Size Calculator.