Capital management is important in trading wherever you do trade . Trading is all about risk but with proper management trader will bring the confidence to make more profits than the loss fact . Capital management is really important in the crypto trade bcz its area is volatile . Its a expert traders things .
Topic: Good capital managemt is important (Read 611 times)
The crypto community will generate similar posts with a stability of 1 piece/month from time to time - and people will still take loans and borrow money to buy another "breakthrough and innovative" token. The main rule can be only one: learn from other people's mistakes to avoid own.
Yes, money management is important (just like in everyday life). Yes, thinking with your own head and not making stupid and popular mistakes is also important (as in normal life). But it still won't help because everyone thinks they are smarter than others
Yes, money management is important (just like in everyday life). Yes, thinking with your own head and not making stupid and popular mistakes is also important (as in normal life). But it still won't help because everyone thinks they are smarter than others
I have been with crypto a lot of time and tried many different things but the only thing that ultimately worked for me is trading with stable coin and bitcoin as the base. I hold 90% of my funds on either bitcoin or stable cons and making trade orders in grid style. Though it's not a high profitable strategy as many of the traders here make, it comfortably brings me about 1% of my total capital monthly as my returns.
This is safe method. Actually only bitcoin can give us a good return, I am not looking down on some altcoin but people or trader prefer the market of btc over stablecoin. Maybe before other pair are noticed but now that many stablecoin and have many choices, I think this is most radical and been utilized by current traders now. Capital is important, take note also on the fees of the exchange you are using sometime their cut is really big and only pick markets that are fair to deduct those fees. 
We are once a newbie and I know the feeling of losing your capital due to wrong decision or lack of knowledge.
Its a must to take time learning and dont rush things to avoid the usual mistakes that we can prevent if only we did the right process and didnt let the emotions influence our decision making.
Plan ahead and stick to your strategies, dont feel bad if you lose your capital because there's always a chance to recover it.
Its a must to take time learning and dont rush things to avoid the usual mistakes that we can prevent if only we did the right process and didnt let the emotions influence our decision making.
Plan ahead and stick to your strategies, dont feel bad if you lose your capital because there's always a chance to recover it.
To be successful in any job, pre-experience is surely needed. But how we will gain knowledge. There are two ways- theoretical knowledge and practical knowledge. To be a successful trader, it is very much important to know how to trade, how to manage capital, how to make profit, when to buy when to sell etc. But if you only read books, papers, magazine to acquire knowledge, it will not be fruitful. Beside theoretical knowledge, you need to acquire practical knowledge. For that, you should involve with such persons who are directly engaged in trade for long days. You should study the market strategy and find out how it works, You can make a personal survey on different issues of trade. You can study the failure persons why and how they failed and so on. After all you have to start the trade in small volume initially and follow the successors to be a successful trader.
You made a good point about studying why and how traders fail in trading, and then make amend. Before i started trading, i did thorough research on reasons why traders fail, and everything boils down to improper risk management and greed. Knowing when to join a trade and when to leave is vital to be a successful trader, like OP mentioned ; safeguarding capital is imminent.
Knowing perfect time to buy/sell is not easy. You need to be very good in technical analysis to get it right most times. However, once i make 10% from a trade, i set OCO with a tight stop loss. This ensures even if the coin dumps, I'm still in profit. I'm not saying i always gain in all my trades, sometimes i lose but my stop limit always stops me out reducing further loss. Sometimes stop limit hits and price surges up after. Trading is just so complicated, you can never get it right all the time.
I have been with crypto a lot of time and tried many different things but the only thing that ultimately worked for me is trading with stable coin and bitcoin as the base. I hold 90% of my funds on either bitcoin or stable cons and making trade orders in grid style. Though it's not a high profitable strategy as many of the traders here make, it comfortably brings me about 1% of my total capital monthly as my returns.
To be successful in any job, pre-experience is surely needed. But how we will gain knowledge. There are two ways- theoretical knowledge and practical knowledge. To be a successful trader, it is very much important to know how to trade, how to manage capital, how to make profit, when to buy when to sell etc. But if you only read books, papers, magazine to acquire knowledge, it will not be fruitful. Beside theoretical knowledge, you need to acquire practical knowledge. For that, you should involve with such persons who are directly engaged in trade for long days. You should study the market strategy and find out how it works, You can make a personal survey on different issues of trade. You can study the failure persons why and how they failed and so on. After all you have to start the trade in small volume initially and follow the successors to be a successful trader.
You made a good point about studying why and how traders fail in trading, and then make amend. Before i started trading, i did thorough research on reasons why traders fail, and everything boils down to improper risk management and greed. Knowing when to join a trade and when to leave is vital to be a successful trader, like OP mentioned ; safeguarding capital is imminent.
Yeah, there was this famous start up person who talked about how you should have at least 1 year of costs in the pocket before you even start anything, I understand what he meant in the startup world, there are so many "ideas" or even "apps" that people sit at home and work on and make it happen, but then they ask money for it, you check it and dude has basically close to nothing at all and has the audacity to ask for money when he didn't put any of his own, why? Because it was "his baby" well your baby worths nothing if you put nothing, even facebook had early partner that made it happen before it became an investor thing.
Same with capital management, if you do not have enough to cover your one year even during losses or bear markets, you will have trouble.
Same with capital management, if you do not have enough to cover your one year even during losses or bear markets, you will have trouble.
It is quite easy to gain the theoretical knowledge in crypto trading, there are sooooo many topics about how to become a good trader even just on bitcointalk, when you leave this space you can find millions of it. However it is definitely hard to figure out which one is good and which ones are bad, thats going to take some to figure out but you can simply start with indicators and technicaly analsys I guess.
Yet one thing is for sure, practical knowledge is not that easy, it will take you a lot of money to figure out what you are doing is wrong or right, you would have to spend a bit to even fail and you will deposit more to try again and again, even when you earn some, eventually you may lose so you will have to put some more. In a sense there is no cheap way to learn the practical knowledge part here.
To be successful in any job, pre-experience is surely needed. But how we will gain knowledge. There are two ways- theoretical knowledge and practical knowledge. To be a successful trader, it is very much important to know how to trade, how to manage capital, how to make profit, when to buy when to sell etc. But if you only read books, papers, magazine to acquire knowledge, it will not be fruitful. Beside theoretical knowledge, you need to acquire practical knowledge. For that, you should involve with such persons who are directly engaged in trade for long days. You should study the market strategy and find out how it works, You can make a personal survey on different issues of trade. You can study the failure persons why and how they failed and so on. After all you have to start the trade in small volume initially and follow the successors to be a successful trader.
Many people think that you can own a lot of capital overnight.
The get-rich-quick mentality leads to immediate wrong decisions and losses. This is a known fact now, does not need proof. But the new entrants will never learn.Quote
Many new investors invest without realizing it. They are suffering a lot due to not knowing the management.You need to study more before investing.
Research is good but it will not always reduce your losses. You have a better edge at knowing what the project is can use that to your advantage to enter/exit at proper times and thus help in profiting. However it becomes more of a 50-50 thing when trading on that asset which is a different thing. For being an investor you need to know your exit strategy as well. 
Of course, if you want to be profitable in this market. Then you need to manage your capital very well. In order to do that, you need to have the most detailed plan of your investments. I have seen many new investors in this market fail because they do not know how to manage capital seriously
The best advice from original post lists is learning to take profits, long term hold is good but you would have make more if you are the type that take profits or change your Bitcoin to usdt and buy again when Bitcoin goes down, before you know it you will double your BTC
You are right. Many people think that you can own a lot of capital overnight.Many new investors invest without realizing it. They are suffering a lot due to not knowing the management.You need to study more before investing.
money management very crucial for all traders , if they have not any plan with their money it will be very easy to lost in market. trade plan which is contain trade risk and profit ratio will help us to calculate on how long we able survive in market. if we dont have it , i think its same think with gambling.
I do not think capital management is needed in the crypto currency trading sphere.
We need it.
Are you not a trader? Managing your capital is very significant. If you can't manage your fund and you do hastily entries, your trades will probably be a mess.
What I do is to compute my capital fund with the leverage I am using so I can still move forward whenever immediate liquidation or cut loss occured. I always get my profits out and let stay my capital.
I quite agree with the tips that you shared to help novice traders manage capital management so as not to rush into making decisions, maybe a little extra for novice traders in addition to capital management there are very important tips, namely when choosing a coin to trade because if you choose the wrong coin would be a big disaster for our capital, of course the most important thing is that we choose a Coin ranked 100 CMC to be our main target in trading.
Choosing the right project by following the progress of the team behind. If you have good information regarding on how the team are working behind the project you'll be able to decide properly. It will cater the fund management and the process whether for long term or short term goals.It's always best to research and assess properly every decision that you'll going to take as risk within volatile market is really unavoidable.
Money management is really very important. I also made mistakes, did not know how to trade correctly and did not properly manage my capital. It was a very valuable experience for me. And I can confidently say that you need to pay attention to this.
Good capital management is very essential not just in trading alone but in all aspects of business. Learn to make stop loss if you think you are losing a big amount already. And do not trade with a wrong coin because it will only make you lose more, rather trade on a coin that is on top of the coinmarket and that is more trusted by most of the traders.
When it comes to trading, it needs fully equipped knowledge about it, especially in fund management. Any business will fall because of this thing not only in trading. If you can manage your fund correctly, then you can see that your trading life has better outcomes and for sure it succeeds than to lose.
This is a vital thing we need to acquire in all aspects of our life and particularly when you are dealing at risk.
BTW,
Since we are talking about trading in here, I believe this thread does not belong to Altcoin discussion but it should be at the trading discussion board https://bitcointalk.org/index.php?board=8.0.
This is a vital thing we need to acquire in all aspects of our life and particularly when you are dealing at risk.
BTW,
Since we are talking about trading in here, I believe this thread does not belong to Altcoin discussion but it should be at the trading discussion board https://bitcointalk.org/index.php?board=8.0.
capital management can be regarded as an accounting strategy that strives to maintain sufficient and equal levels of working capital, current assets, and current liabilities. This helps a company to meet its expense obligations while also maintaining sufficient cash flow and is primarily related to short term financial decisions.
Proper management of working capital is essential to a company's fundamental financial health and operational success as a business.
Proper management of working capital is essential to a company's fundamental financial health and operational success as a business.
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