Topic: Crypto Trading Risks and Management Model. (Read 184 times)

You dey write about investing or you dey write about trading because the thread dey confusing but get some wisdom inside sha. Your title dey talk about trading and if you dey talk about trading for real e get some things wey you write wey no relate well with trading but if Na investing wey you been dey do e make sense. When you dey talk of crypto trading risks and management then e get things wey as a trader you suppose do to reduce the possibility of losing all your money but you no list any of them as all you been dey talk about na investing which isn't bad but the title of the thread might need to be change for better understanding for people.

When you dey trade the exposure wey you dey get wey be the risk na the volatility of the market and how you go fit protect yourself against those volatile na to first understand the market wey you dey inside. Bitcoin is less volatile than altcoins. If you dey altcoins and noticed a dip in Bitcoin market you suppose take cover because normal na dip for the rest of the market wey dey follow after Bitcoin dun get small correction.

You go also get to put stop loss for your traders dem so if the volatility come and the coin wey you dey trade, the stop loss go help reduces the weight of losses wey you go get because of the volatility of the market. This na some of the management things wey me I think dey necessary and I was expecting to see more of this since the title of the thread was talking about trading and risk but not investing.

I don't know if you are talking about people who actually invest in altcoins or Bitcoin because I believe with an investment on Bitcoin the risk involved is far way lesser than when you actually put your money on other crypto coins. Most crypto enthusiast today have understood this and still yet many have not being able to invest as they tend trade it by themselves and get the quick money but there is huge risk involved which is far more just buying crypto (Bitcoin,) and just holding

In this your post are you talking about the day traders or both day traders or crypto hodlers?  Yes day traders will be the ones that will benefit more of this things you have itemized above. Crypto hodlers are those who buy any crypto of their choice and leave it for any number of years they want. If you buy crypto and decided to hold it I don't think there is nothing you can do when it comes risk management. Daily traders such as futures and spot traders and the ones who should be worried about these.

Before venturing into any business you must have your feasibility study, this study helps to guide you throughout the beginning process and through to the final stage of commencement. However in Bitcoin I believe for every investor or for anybody that was brought in by somebody into Bitcoin, you must be taught the risk involved and how to manage your risk, because it is not always Rosey as a bitcoin investor, but trust me, there are always glory days. So you should learn how to manage your risk so you can be able to navigate the cryptocurrency market on your own, so as not to incur losses as an investor. As an investor take some time to do some market survey and learn on your own, it is a financial decision that you are taking, so learning shouldn't be a problem for you as a good amount of your money is involved.

I don read from you a few times and from the much I don read, I go like talk say, you be better write but, on this one way you write, I go say e stray small from the topic. I talk like that via say, e no really center on trading like I expect due to your topic.
Your topic Dey based on crypto trading, risk and management but watin I Dey see here na general terms to managing an investment.
Trading na more of a skill and as such, how to manage the skill right there for the market, talking about indicators, trading instruments, placement of stop lose and take profits, management of emotions, techniques to trading margins and all.

While these points you bring out Dey useful in general, e no really hit well on trading. My view shah.

During crypto investment or in terms of trading, profit and loss is a must to every user. Their is even  higher possibility of getting much losses than the gain, it's a matter of close predictions which in turn might not give back a decent return like we hoped for.

It is ideal to study any cryptocurrency before making an investment with, including Bitcoin, understanding the basics and picturing it's progress in a distance time. Many failed to study and learnu some risk controls and they usually end up down in a bigger loss.

Yes but everyone goes for the gain and not the lose. And that is why those who are going into investment must have the mindset of risk management skill to handle the risk calculated risk that will come to face your business or investment. No business or investment is risk free but you to know these things before going into it so that when it happens then you will know what to do. In any public investment there are some bills you will need to pay to the government and all those things are part of the risk management plan because if your didn't plan for them, they might also weigh you down in the investment.

As an investor, you must be careful in the dealing with the public because scammers full all the corners of the world so if you just make a slide mistake, they would empty your funds for you and all those calculations must be put in place to avoid scamming.

The part you said financing the business is very important likewise investment, any investment/business that lack regular finance might likely fall mostly in the business sector when every marketer seems to be competing, concerning the risk, there's no risk free investment and every investment has an advantage and disadvantage in other words any investor that lack the ability to secure his/her investment will not make any profit, considering the type of business and investment before investment matters a lot like making a research before investing so you can have full confidence with the investment not minding the risk involve. Now in the crypto investment a lot of people just jump into investing without knowing the coin and the potential, before choosing any business or investment it's best to make research before investing, this is common in the business sector also and they lack where and when to sell a particular goods.

Where is this model derived from? You are making trading sound simple and easy i just hope this post doesn’t mislead others by making them think it’s as easy as this model.

Trading requires in depth knowledge and understanding and this usually takes months to achieve despite that it still requires practice and all this still wouldn’t guarantee 100% success rate. I like the way you structure out your points though but you need lay much emphasis on knowledge because it the most important aspect of it, having a strong background will increase your chances of success and also only trade an amount you can afford to lose.

Also your post title de talk about trading and for your 3rd point you de talk about investor instead of trader.

Trading na very risky business and i no go advise anybody to start de trade when e no sabi anything about am, basic knowledge sef no bad but for trading i no sure say e go do so me i believe say na to get in-depth knowledge about am na im better pass so you go sabi all the risk management principles and the understand when to enter market and when to comot and also so you go sabi the best strategy wey you go de adapt wey go suit you pass.

Ps: because dem talk say trading na about risk no mean say you go just de take risk anyhow, alway make sure you take calculated risks and ensure they are not beyond your control.

If you no manage risk, traders go dey face big risk wey fit wipe their trading money. E dey especially true for cryptocurrency market, where price fit dey swing anyhow. Risk management dey allow traders set limits for potential losses, so that one bad trade no go cause big loss of money.

How you go fit implement risk management well?

Get solid trading plan:
Your trading plan suppose include your risk tolerance, profit goals, methodologies, and the types of cryptocurrencies wey you wan trade. E suppose also specify when to enter and exit trades.

Invest only wetin you fit afford to lose:
Crypto market dey very volatile, so you suppose only trade with money wey you fit afford to lose.

Size your positions:
No risk all your money for one trade. Successful traders dey often risk fixed percentage of their money per trade.

Limit the use of leverage:
Leverage fit increase your profit but e fit also increase your loss. Use am with caution.

Always calculate your risk-to-reward ratio:
This ratio go help you understand the potential risk versus the potential return of one trade. Aim for trades wey get high probability of success.

Use stop loss orders:
These orders fit limit your loss if market no dey move your side.

The most important thing be say without risk, gains no go dey at all, but on the other hand, e good make anybody way won take risk try take the kind of risk wen be say em no go totally lose everything way em get.
This things nai make I no like trading at all because in a twinkle of an eyes, person money fit just JAPA and if the person nah somebody when no fit control em self em go like trade more to see wether em go fit gain back on the money way em lose.
Nai make I say trading and gambling nah almost the same thing because gambling self no matter the strategies way you apply, if you no get luck to win,,, my guy,,, you go bet tire and nothing ho come out. So, e better make everybody try put money for something when em go use em complete eyes sleep for night.

Anything for this life wey concern trade of any kind, my brother risk dey inside. If you like make e be say na food you carry money trade with, risk dey inside. And one of the highest risk wey we get naim be the one wey dey for money  aspect. As an investor we supposed to dey risk conscious all the time. This na one of the reasons why we supposed do enough research and study about any coin before we buy am, make e be like say na because of trend naim make us buy am. Plenty scam project dey everywhere, even the Bitcoin we dey talk say be the most trusted cryptocurrency. Risk still dey inside but e dey minimal compared to other altcoins

An investor is a risk taker, someone that puts his money into a business, an asset or property having the expectation that profit will be made. For It's a move taken under expectation for profit that means in that expectation it is likewise possible that things can go bad and the investment fail to yield added value. That's the risk.

Consequently, I'll advise that potential investors shouldn't adopt the way of thinking I have seen some persons do where they invest into cryptocurrency without having a basic knowledge of anything crypto first, their idea is that they will learn about it after they have invested. It is a wrong attitude, the best way is to learn, gain the knowledge about what you're to invest your money on before you take a decision based on what you have known. What if after investing under crudeness then later learnt about it only to dislike what you have learned (maybe due to its volatile nature) and you regretted wishing you hadn't invested based on that area of risk.

Only invest in what you know.

There is no investment that is totally risk free, likewise there is no investment that feature only gains

Therefore, as a crypto investor, have it at the back of your mind that , there might be losses or gains.

But then there are principles to apply as investment risk management for every professional investor.

1. Identification of possible investment: Here the investmentor must think through the business and the risks that might be likely faced such as fall in prices, scam schemes or delayed disbursement and other related problems.

2. Analysing of possible investment: A professional investor must analyse the possible or suspected risks of investment in that particular business. It is a practice of trying to foresee the possible losses or gains.

3. The investor must plan down possible risk control mechanisms to prepare the groups for possible updates.

4. Then finance the business: In financing business, the capital must be within the dictates of the risks foreseen. In this way, there will be minimum losses.