For those of you who are in your boom and bust phase, where you’re able to make money but always lose it, this is for you:

I remember when I used to trade crypto futures only. I would make a ton of money but I’d always go on tilt at some point and erase most, if not all, of the money I made.

I knew more than enough to find good trades, had the confidence to execute and hold them to the target, but simply because I didn’t understand one thing, I never would sustain any success.

Risk management is something people don’t talk nearly as much as analysis or psychology, when in reality risk management is just as important as the two.

Without good risk management, you fail. Point blank period.

A common mistake I see people make is when people view risk management as position sizing alone.

Risk management consists of

- position sizing
- stop loss placement, when to trail your stop, how you trim your profits
- how many losses you allow in a day, week, and month
- at what amount of profit in a single day, week, or month do you stop trading
- what is your protocol for when you take a big loss due to external factors like slippage
- what do you do in the event of a losing streak/drawdown
- how many positions do you have at once

You must have all of this dialed in and documented in your trading plan in order to achieve consistency.

Without this, you will be able to find good trades, maybe even get funded, but you’ll always blow up at some point.

Trading is hard, and it takes a lot of work and planning. Skipping things like this and cutting corners will leave you burnt out and likely to quit at some point due to frustration.

Whatever you do, if you’re devoting your time to this hustle, make sure you’re checking all of your boxes and doing it right

Trader Casper

Ez pz😎