🚨 CRITICAL ANALYSIS: CAPITAL PROTECTION IN CONSOLIDATION
In days of low liquidity and high volatility like today, the number one priority is NOT to seek maximum profits, but to protect capital! Many retail traders fall into the trap of overexposure.
📈 KEY RISK MANAGEMENT STRATEGIES:
1. **Mandatory Stop Loss:** Define your maximum loss level BEFORE entering any trade. Once established, do not move it.
* *Practical Example:* If you trade $BTC at $94,000, your Stop Loss could be at $93,500.
2. **Reduced Position Size:** In uncertain markets, reduce the percentage of your capital allocated to each trade.
* *Golden Rule:* Do not risk more than 1-2% of your total capital per trade.
3. **RSI Monitoring (Relative Strength Index):** In 4-hour (4H) time frames, an RSI above 70 indicates overbought and possible correction; below 30, possible bounce.
* *Alert:* If your asset is overbought and has low liquidity, beware of traps!
4. **Zero or Minimal Leverage:** Today is not a day for excessive leverage. Liquidations can be brutal. Trade spot if possible.
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💬 **COMMUNITY QUESTION:**
What is your golden rule for risk management on slow market days? Share your strategies to learn together. I’m reading you!
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