Day 11/20

Understanding Risk Management

One key thing I’ve learned:

👉 You don’t need to win every trade to be profitable.

What really matters is how you manage your losses and profits.

Here’s what I’m practicing:

• Risk a small percentage per trade (1–2%)

This means even if a trade goes wrong, it doesn’t damage your account too much.

• Use a stop loss

A stop loss helps you exit a trade automatically if the price moves against you.

• Aim for a good risk-to-reward ratio

For example, risking 1 to make 2 or more helps balance losses over time.

• Avoid emotional decisions

Sticking to a plan is more important than reacting to the market.

Even when analyzing coins like Bitcoin, I’m realizing that protecting capital is just as important as finding good entries.