How to Become a Trading Master — Dealing with Black Swans Even if your win rate is 99%, that 1% black swan event can wipe you out completely. Lessons: The Swiss franc in 2015, negative oil prices in 2020, LUNA in 2022. Rule: Never allocate more than 20% of your total capital as notional principal to any single asset. Action: When faced with sudden extreme market moves, your first response should be to reduce position size, not add to it. Staying alive matters more than anything else. Have you ever experienced a black swan?
Share
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.