What are some common mistakes to avoid when determining position size in crypto trading?

1 answers

• BarackDec 01, 2024 · 8 months ago
  When determining position size in crypto trading, one common mistake to avoid is not considering the size of your trading account. It's important to allocate a reasonable portion of your account to each trade to avoid overexposure. Another mistake is not considering the potential for slippage. Slippage refers to the difference between the expected price of a trade and the actual executed price. This can occur in fast-moving markets and can impact your profitability. Additionally, traders should avoid the mistake of not considering the impact of fees on their position size. Trading fees can eat into your profits, so it's important to factor them into your calculations. Finally, one mistake to avoid is not regularly reviewing and adjusting your position size strategy. The crypto market is constantly changing, so it's important to adapt your position sizing strategy as needed to stay ahead.
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