Technical analysis by HexaTrades about Symbol BTC on 7/23/2025

In the world of trading, mastering technical analysis or finding winning strategies is only part of the equation. One of the most overlooked but essential skills is money management. Even the best trading strategy can fail without a solid risk management plan. Here’s a simple but powerful money management framework that helps you stay disciplined, protect your capital, and survive long enough to grow. ✅1. Risk Only 2% Per Trade The 2% rule means you risk no more than 2% of your total capital on a single trade. -Example: If your trading account has $10,000, your maximum loss per trade should not exceed $200. -This protects you from large losses and gives you enough room to survive a losing streak without major damage. A disciplined approach to risk keeps your emotions under control and prevents you from blowing your account. ✅2. Limit to 5 Trades at a Time Keeping your number of open trades under control is essential to avoid overexposure and panic management. -A maximum of 5 open trades allows you to monitor each position carefully. -It also keeps your total account risk within acceptable limits (2% × 5 trades = 10% total exposure). -This rule encourages you to be selective, focusing only on the highest quality setups. Less is more. Focus on better trades, not more trades. ✅3. Use Minimum 1:2 or 1:3 Risk-Reward Ratio Every trade must be worth the risk. The Risk-Reward Ratio (RRR) defines how much you stand to gain compared to how much you’re willing to lose. -Minimum RRR: 1:2 or 1:3 Risk $100 to make $200 or $300 -This allows you to be profitable even with a win rate below 50%. Example: If you take 10 trades risking $100 per trade: 4 wins at $300 = $1,200 6 losses at $100 = $600 → Net profit = $600, even with only 40% accuracy. A poor RRR forces you to win frequently just to break even. A strong RRR gives you room for error and long-term consistency. ✅4. Stop and Review After 30% Drawdown Drawdowns are a part of trading, but a 30% drawdown from your account's peak is a red alert. When you hit this level: -Stop trading immediately. -Conduct a full review of your past trades: -Were your losses due to poor strategy or poor execution? -Did you follow your stop-loss and risk rules? -Were there changes in the market that invalidated your setups? You must identify the problem before you continue trading. Without review, you risk repeating the same mistakes and losing more. This is not failure; it’s a checkpoint to reset and rebuild your edge. Final Thoughts: Survive First, Thrive Later In trading, capital protection is the first priority. Profits come after you've mastered control over risk. No trader wins all the time, but the ones who respect risk management survive the longest. Here’s your survival framework: 📉 Risk max 2% per trade 🧠 Limit to 5 trades ⚖️ Maintain minimum 1:2 or 1:3 RRR 🛑 Pause and review after 30% drawdown 🧘 Avoid revenge trading and burnout Follow these principles and you won't just trade, you'll trade with discipline, confidence, and longevity. Cheers Hexa