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What's the point of the 2% risk management for margin trading?
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I read that you only want to risk 2% of your assets on a trade, ok.

So if I have $1000, I should only risk $20.

With $20 on a 10x isolated margin with Binance, I get $200 buying power.

But why should I even bother margin trading when I could easily spot trade with my assets and set proper stop losses so that I would not lose more than $20? This way I would avoid interest rates and not worry about getting margin called, as well as avoid jumping through hoops to trade with a VPN.

When I enter a trade I anticipate being there for at least 2 weeks, and I only margin trade 1 pair, as I don't see the point in "diversifying" as everything in crypto is more or less correlated with each other.

What are your suggestions for risk management?

I can only see the appeal of entering a trade with 10% or more but feeling a little confused and the viability of this.

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2 years ago