The world of cryptocurrencies is a world of fluctuations, sudden events, excitement, anxiety and danger. The price of these emerging and lovable assets changes momentarily, and this feature (at least for the time being) is inevitable.
Such a price fluctuation can be a good opportunity to make a profit and multiply the value of your capital in a short period of time; But it can also be dangerous, reducing the value of this investment by more than half.
This article tries to explain all the concepts in simple terms to all traders; But the main use of determining the size of the trading position is in margin trading and future contracts.
The first step is to manage your emotions:
You need to be able to control your emotions and not let them influence your decisions. The best way to achieve this goal is to achieve a set of rules and adhere to them.
In other words, you need to set up a strict “trading system” for yourself and stick to it as much as possible.
Determine the account size:
Your trading balance or account size is the available capital that you intend to allocate to a particular trading strategy.This may seem obvious; But mentioning it is not without merit. Your account size is not all you have in the form of bitcoin (or any other cryptocurrency).
By account size we mean only the part of the capital that you intend to use only in trading. So split your portfolio and consider only the part of what you intend to devote to the transaction as your account size.