Cryptocurrency Q&A
What is the rule of 2 in investing?
What is the rule of 2 in investing?
Lucia
Thu Nov 28 2024
|
6 answers
1014
The rule of 2 in investing refers to an investing strategy where an investor risks no more than 2% of their available capital on any single trade. This strategy helps to manage risk and preserve capital by limiting the potential loss on each investment.
6 answers
Riccardo
Fri Nov 29 2024
Imagine a trader with a $50,000 account.
Was this helpful?
120
60
Lorenzo
Fri Nov 29 2024
The 2% Rule is a widely adopted strategy in trading.
Was this helpful?
78
45
Michele
Fri Nov 29 2024
It stipulates that traders should not allocate more than 2% of their account equity to a single trade.
Was this helpful?
177
60
CharmedFantasy
Fri Nov 29 2024
By applying the 2% Rule, they would only risk up to $1,000 on any given trade.
Was this helpful?
217
78
Lorenzo
Fri Nov 29 2024
This rule is designed to limit potential losses and preserve capital.
Was this helpful?
284
63
Load 5 more related questions
