Questions tagged [trading]

Alessandra Wed Jun 05 2024 | 6 answers 1386

Could you please explain to me the concept of the "1 risk rule" in trading? I've heard about it but am not entirely clear on its significance and how it applies to financial transactions. Could you elaborate on how this rule works, and why it's considered an important principle in managing risks when engaging in trading activities? Additionally, could you provide any examples or scenarios where this rule could be effectively applied? Thank you for your assistance in clarifying this matter.

Stefano Wed Jun 05 2024 | 7 answers 1361

Could you please elaborate on which type of trading would be considered safe for beginners in the cryptocurrency and finance world? Are there any specific strategies or platforms that beginners could leverage to minimize risks while they're still navigating the complexities of the market? Additionally, what are some common pitfalls that beginners should avoid to ensure their trading remains safe? Lastly, would you recommend starting with small investments to gain experience before increasing stakes?

DongdaemunTrendsetterStyleIconTrend Wed Jun 05 2024 | 5 answers 807

Could you please clarify what exactly is meant by the "90% rule" in trading? I've heard it mentioned in several financial discussions, but I'm not quite sure how it applies or what its significance is. Is it related to risk management? Or does it have something to do with the allocation of trading funds? Could you elaborate on the concept and provide some examples to help me understand it better? Additionally, are there any specific conditions or trading strategies that this rule is particularly applicable to? Thank you for your assistance in clarifying this matter.

Eleonora Wed Jun 05 2024 | 7 answers 1552

Could you please explain what derivative trading is, and if possible, provide an illustrative example? I'm curious to understand how it works in the realm of cryptocurrency and finance. Could you elaborate on the risks and potential rewards associated with such trading strategies? Additionally, how does derivative trading differ from other types of trading in the crypto market? Thank you for your insights.

benjamin_brown_entrepreneur Wed Jun 05 2024 | 5 answers 1035

Could you please clarify for me the concept of contract size in trading? I'm trying to understand how it factors into my trading decisions. Is contract size a fixed quantity, or does it vary depending on the asset being traded? Also, how does contract size affect the potential risk and reward of a trade? Is there a standard way to calculate the appropriate contract size for my trading strategy? I'd appreciate any insights you can provide to help me better grasp this aspect of trading.