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Writer's pictureRyan Holmes

RISK MANAGEMENT RULES FOR TRADING


Lessons Learned: My journey in the world of trading since 2015 has taught me some valuable lessons:

  1. Never trade with money you can't afford to lose. This includes essentials such as rent, food, and family expenses.

  2. Diversify your portfolio by never putting more than 5% of your investments into one single trade.

  3. Focus on steady gains, not big wins. Small profits can add up over time to make a huge difference.

  4. Emotional control is key. The biggest hindrance in trading is often ourselves, so it's crucial to stay level-headed and trade without bias or emotional attachment. Keep in mind that 40-60% drawdowns are normal in a bull market.

  5. Last but not least, Diversify your portfolio by only filtering and selecting tokens or stocks with great foundation and long-term value. Focus on these trades and make them 80% of your portfolio, but never put more than 5% of your investments into one single trade. The remaining 20% will be allocated to high-risk, high-return investments.

Stay safe and wise in your trading endeavors!


Ryan Holmes

Cryptocurrency Investment Diary, 12th Mar 2022.


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