# Market Volatility and Risk Management: Avoid Major Losses



For the vast majority of beginner traders, it is recommended to divide your principal into 100 portions for trading, with stop-loss on each trade not exceeding 1% of your principal.

After you become a mature and stable trader, then make adjustments. Cherish your life, refuse all-in bets.

Position sizing calculation based on losses:

Opening position size (BTC) = Total assets × Single trade risk / Entry price − Stop-loss price
BTC3.58%
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