BAYKRIPTO EDUCATION — DEFINE YOUR LOSS FIRSTMost traders ask the wrong question before entering a position.
They ask:
“How much can I make?”The first question should actually be:
“How much am I willing to lose if I’m wrong?”Especially in today’s environment:
Oil approaching $100
U.S. inflation data approaching
Fed decision next week₿ BTC still below $80K
volatility can increase quickly.
Before pressing BUY or SELL, define three things:
ENTRYWhere exactly is your trade opened?
INVALIDATIONAt what price is your original idea objectively wrong?
MAXIMUM ACCEPTABLE LOSSHow much of your account are you willing to lose if price hits that invalidation?
Only AFTER those three questions should you think about:
Target
Leverage
Position size
Don’t choose 20x first and then invent a stop.☑ Choose your risk first and let that determine your position.
Example
You can be bullish on BTC and still decide:
“If this level breaks, my idea is wrong.”
Taking that loss doesn’t make the analysis stupid.
Refusing to accept invalidation does.
BAYKRIPTO RULEGood traders don’t need to be right every time.
They need to survive the times they’re wrong.
Protect the account first.
The next opportunity will come.
BAYKRIPTO COMMUNITY
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