managing capital in day trading

[forestx]

OK I have had a good week day trading on binance even with the weekend pull back. I am thinking of increasing the amount I trade and maybe take a larger risk, basically move from beer money to rent money. I am looking at capital and what I will need.
I normally trade coins 20-25% of my portfolio for 1% return and I am trying to figure out what my capital should be
While I can do the math on how much I need on paper to achieve trading goals my main issue is capital and what each market can take and get my buy and sell orders filled.
I dont want to set walls on myself that cant be broken.

Also I need to develop a better risk management system when it comes to stop loss. I red an article about regular day trading and it suggested a 1.5% profit target and 0.5% stop loss. The only issue with that is as we know a crypto coin can wick 5% either way in a 5 minute candle
0.5% seem way too tight for crypto.
So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

[1714068577]

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[1714068577]

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[joeperry]

So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

This is only my own recommendation. I think any amount is acceptable into trade as long as you're capable of handling things that may happen such as losing it in some worst case scenario.

Any amount will do as long as you can handle the risk. According to some articles and courses that I've enrolled most of the suggestions of the lecturer was to do a 1:4 stop loss ratio where in you're going to get out once you lose 1% of your investment and get out once you have a 4% profit but it stated there that you can increase your profit % the higher the better but if you want an assurance profit you should get out at 4%

[Ucy]

OK I have had a good week day trading on binance even with the weekend pull back. I am thinking of increasing the amount I trade and maybe take a larger risk, basically move from beer money to rent money. I am looking at capital and what I will need.
I normally trade coins 20-25% of my portfolio for 1% return and I am trying to figure out what my capital should be
While I can do the math on how much I need on paper to achieve trading goals my main issue is capital and what each market can take and get my buy and sell orders filled.
I dont want to set walls on myself that cant be broken.

Also I need to develop a better risk management system when it comes to stop loss. I red an article about regular day trading and it suggested a 1.5% profit target and 0.5% stop loss. The only issue with that is as we know a crypto coin can wick 5% either way in a 5 minute candle
0.5% seem way too tight for crypto.
So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

Can you afford to lose the rent money? If no, then I would advice you not to take the risk. You should try building your wealth gradually and patiently. I tend to learn trading better when I don't risk too much. I'd increase my trading fund a little bit as my trading skills get better

[carlfebz2]

Also I need to develop a better risk management system when it comes to stop loss. I red an article about regular day trading and it suggested a 1.5% profit target and 0.5% stop loss. The only issue with that is as we know a crypto coin can wick 5% either way in a 5 minute candle
0.5% seem way too tight for crypto.
So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

When you do set stop losses (SL) then it should really be more than on what forex/stocks been using. Price swings or level of volatility is indeed different here on crypto.

Asking on what would be the recommended percentage? Then it would totally depend on you because each of us do have that target level on a particular day or
set of rules that you do accept specially on losing times.

If you you do actively trade then making a few percent on an entire day isnt really that bad.

[Stedsm]

I think 5% profit margin on any coin is enough considering the fact that you know about the risks and wicks too, while setting a loss of that 5% is the max you may afford to lose. I know that the RR will be worst here but if you are interested in money management, then this would work to be the best (if you know where you're putting your bets on).

[semobo]

So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

Cryptos are highly volatile,it can bump or dump 10% even in few minutes now you have to decide how much you can afford to lose at that situations.As others said 5% looks the right value for stop loss but its still huge loss if it happens in a day trade.How can you minimize the risk of losing capital is to make time frame for trading into more short and aim for less profit margin by this you can keep increasing your portfolio value and can reduce effects on such highly volatile situations.

[harizen]

So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage  

Even you tell us your story and the preview of what will be your management plan, you are the only one who can determine the "amount" needed to put on trades.

My suggestion is, make a test run. Allocate some of your funds on trade and do what's on your mind how to manage it. See if it will become effective in the long-run. Surely along the way, changes will be made. Just try and try until you make a strategy that can deal with your concern.

People really need to risks something to know if it's worth it or not. Of course, don't just take risks without proper analysis. Put a serious approach anytime and focus. Day trading isn't as simple as other thinks.

[exstasie]

Also I need to develop a better risk management system when it comes to stop loss. I red an article about regular day trading and it suggested a 1.5% profit target and 0.5% stop loss. The only issue with that is as we know a crypto coin can wick 5% either way in a 5 minute candle
0.5% seem way too tight for crypto.

The risk/reward ratio is spot on. I would aim for 3:1 or better too. That means 3x profit (or better) for every 1x stop loss.

The risk/reward ratio is what you should focus on. You don't need to apply such tight stops. I use much wider stops than 0.5%. Trading the daily/weekly charts with stops that tight is a recipe to get stopped out over and over. 30%/10% results in the same ratio.

This is one of two main aspects of risk management, the other being how much capital you put into each trade.

[Slow death]

I would start by asking you the following:

what is your capital?

what is your daily profit?

Speaking from my own experience (note that I am an amateur), I avoid creating expectations of things like: "I will earn 1% profit every day" because in reality there are days that I don't earn anything and I don't lose anything. About Stop - Loss, I put 1%

[GreatArkansas]

Good risk management will do, even how much your capital is.
Your risk-reward ratio, currently how much your risk-reward ratio? Since in your post you just mentioned you have just read some articles.
Can you share with us your risk-reward ratio?
For me, you should also always stick to your plan, like your target, once you already achieve your target, either your adjust your stop loss to your entry price or adjust in to breakeven or in profit, or even close your trade once you already reach your target.

[Ryker1]

Well, first things first. May I ask you how old are you?
How long are you been trading? How often did you have better days in trading? I understand how you feel in winning and having that strong emotion that you can feel that it is worth it. But let me tell you this, --in this forum where you posted this. Please expect that we were not born yesterday. I can tell everyone here has experienced the same emotion and ended up losing. We've been there and done that. Indeed, Just a piece of advice, don't rush things. Build a foundation and win it.

[el kaka22]

I would suggest highly against moving from beer money to rent money right away. I would say if you want to move from beer money to anything, I would say move to beer+pizza+movies type of money, that would be a lot more logical, do not forget that the more you trade the bigger chance you will lose eventually as well. This is not about you being good or bad, even the best traders will eventually lose all because when you trade 10 trades there is a chance you will not lose a single time and get all 10 right, however if you end up trading 10000+ times you will definitely have some that you will lose.

It is wiser to move smaller by small and get one of your first losses and realize that there is a chance you will end up losing eventually while you are using smaller amount of money.

[Kelvinid]

It is really tough to get at risk with crypto investment. If you are new to this field, it is better to start at a small amount even you'll just earning at 1% a day. It would be an option also if you can manage to increase your capital every single day but you should have to think also how the higher risk since you are new into this.

Yeah, having 1-1.5% winning profit is quite small but as a starter, it is already enough. There is no harm to aim high but we should have to think that crypto investment it different from any form of investment. I'd started in trading with a 1% target and 0.5% stop loss but for now, I have to take the risk make it double or even triple depending on the market situation and the capital as well.

[rodskee]

                                 ~snip~

Can you afford to lose the rent money? If no, then I would advice you not to take the risk. You should try building your wealth gradually and patiently. I tend to learn trading better when I don't risk too much. I'd increase my trading fund a little bit as my trading skills get better

absolutely because i see no reason to rush,He seems to be knowledgeable about trading but i am sure he has also a doubt because if none?for sure he is not asking for some tips here.risking Beer money is really easy because thats nothing to lose but Rent money?not unless he is ready to sleep in streets and be a Homeless then he can decide to risk,and besides the way he speaks it seems that there are lot of knowledge inside him.why not just try to Invest the Half of rent Money?if successful then add another half?

[maydna]

The acceptable amounts to trade will depend on yourself. You can set by yourself because there is no right amount that we can use in trading. People will have vary amount to be used in trading, and they also set on a different percentage to stop loss the trade. You need to find by yourself which amount you can accept and how big the percentage that you feel that is good for you. Besides that, it will depend on how big the money that you use to trade so you can calculate how big the percentage of the profit that you want to take.

[Janation]

You should really consider your capital.

Always remember that if you will be investing in cryptocurrencies, better accept that you can lose that money. That is why a lot of people would say that you should only invest what you can lose. The percentage of what you should invest really depends on your salary if you would invest a good amount you should consider that you could lose that and the money in beers and food would be largely affected.

[ooom]

The most certain way to be in a winning cycle is buying at a hysterical support lines. Fractals tend to repeat themselves.

[abel1337]

OK I have had a good week day trading on binance even with the weekend pull back. I am thinking of increasing the amount I trade and maybe take a larger risk, basically move from beer money to rent money. I am looking at capital and what I will need.
I normally trade coins 20-25% of my portfolio for 1% return and I am trying to figure out what my capital should be
While I can do the math on how much I need on paper to achieve trading goals my main issue is capital and what each market can take and get my buy and sell orders filled.
I dont want to set walls on myself that cant be broken.

Also I need to develop a better risk management system when it comes to stop loss. I red an article about regular day trading and it suggested a 1.5% profit target and 0.5% stop loss. The only issue with that is as we know a crypto coin can wick 5% either way in a 5 minute candle
0.5% seem way too tight for crypto.
So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

Crypto Price fluctuates a lot, The .5 stop loss I think is for less volatile assets like on the one on the stocks. I think you should make the percentage higher a little bit. This kind of risk management system is very suitable for daily trading I guess cause you are guarding the price at every minute or you can just set up a ticker at a loss percentage you are avoiding.

I am also thinking that you should spend the money that you can afford to lose especially that you are planning to rent money for capital. It's always a risk but you should do fine with your strategy.

[Yatsan]

OK I have had a good week day trading on binance even with the weekend pull back. I am thinking of increasing the amount I trade and maybe take a larger risk, basically move from beer money to rent money. I am looking at capital and what I will need.
I normally trade coins 20-25% of my portfolio for 1% return and I am trying to figure out what my capital should be
While I can do the math on how much I need on paper to achieve trading goals my main issue is capital and what each market can take and get my buy and sell orders filled.
I dont want to set walls on myself that cant be broken.

Also I need to develop a better risk management system when it comes to stop loss. I red an article about regular day trading and it suggested a 1.5% profit target and 0.5% stop loss. The only issue with that is as we know a crypto coin can wick 5% either way in a 5 minute candle
0.5% seem way too tight for crypto.
So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

Crypto Price fluctuates a lot, The .5 stop loss I think is for less volatile assets like on the one on the stocks. I think you should make the percentage higher a little bit. This kind of risk management system is very suitable for daily trading I guess cause you are guarding the price at every minute or you can just set up a ticker at a loss percentage you are avoiding.

lol 0.5% of stop loss? Even transaction fee is above that point! That only applies on altcoin that has not been moving for a long time, really. Even you have it at 1% that would not work on day trading, you should go higher than 8%, maybe 10% is the best and safe range for you to stop trading when meet that point. And since day trading requires a lot of monitoring, I suggests to get the help of a bot in trading. Trading bot really guards your capital from decreasing the value at the exact point where you set it. If you really want to stick with 0.5% stop loss, then might as well stop targeting the day trading.

I am also thinking that you should spend the money that you can afford to lose especially that you are planning to rent money for capital. It's always a risk but you should do fine with your strategy.

This is what the common mistakes of some amateur and beginner after hearing what crypto investment could make with their money. I know some people even selling their personal items just to add to their capital, little did they know that they entered the wrong door with quick rich mindset, tho there is no really a quick way to get rich. Feel pity.

[Kurokonobasuke]

So what do people recommend - what is an acceptable amount to put into tradres and how do I calculate that and what is a good stop loss percentage 

As a trader, for me the acceptable amount that I can trade is only 5% of the capital so that when I loss in a trade it is not a big loss of my capital.
But you can set your own acceptable amount that will earned you and doesn't loss you a big amount of your capital. There is no such amount you can trade, you can trade on your preferred amount.
You can make your management plan that will help you to trade and managed on what amount that you want. Cryptos are highly volatile it can change the price market time to time so that it is enough for you to trade a 2-5% of your capital. Taking a risk will let you to developed your price market strategy in trading.