@liveup
@liveup Investment Structure (Money Management)
Before you trade, you should define your "Format of Operations" to protect your balance.
The 2% Rule
• Total Capital: $1,000
• Risk per Trade: 1% to 2% ($10 – $20)
• Daily Stop-Loss: 5% ($50) — If you lose this much, stop trading for the day.
• Daily Profit Goal: 5% to 10% ($50 – $100) — Once reached, withdraw or stop to protect gains.
Compounding vs. Flat Stakes
• Flat Stake: You invest the same amount (e.g., $10) every time regardless of wins or losses. (Safest)
• Martingale: Doubling your investment after a loss to recover. (Highly Risky—not recommended for beginners)