Risk Management
The 2% Rule: Risk Management Essentials
📖 10 min read
👁️ 2 views
❤️ 0 likes
📅 Jan 10, 2026
Professional risk management strategies for crypto trading
The 2% Rule
Never risk more than 2% of your total capital on a single trade.
Why 2%?
- Survive 50 consecutive losses
- Keep emotions controlled
- Protect your account
- Trade with confidence
Position Size Formula
Position Size = (Account × 2%) / (Entry - Stop Loss)
Risk-Reward Ratio
Always aim for minimum 1:2 risk-reward ratio.
Common Mistakes
- Overleveraging
- Revenge trading
- No stop losses
- Moving stops mid-trade
Protect your capital first!