Topic: Good capital managemt is important - page 3. (Read 611 times)
Without management we cannot any work .good management is always needed. So good capital is important part of money makes trading. Trading is always riskfull.but good management gives good earnings. I think so.
My rule is never buy a pump or a Hyip, never buy a new altcoin to hold for the future when no active development from the team. And always never use all your fund in market have a reserve and never sell all your position when you are not too sure of the market direction.
I always avoid coins that are in a bull phase because these are coins you can easily lose money if whales tend to sell more. In the crypto market you need to consider a lot and definitely have an investment plan to survive well. Over the past few years I've always used lots of ways to make money and that helped me avoid a lot of big risks.
My rule is never buy a pump or a Hyip, never buy a new altcoin to hold for the future when no active development from the team. And always never use all your fund in market have a reserve and never sell all your position when you are not too sure of the market direction.
A simple question on this and a direction. Can you really build a strategy for management of capital without building good emotion to go along ? The answer is nope. This is because, if you don't have good management of the emotion you can not afford not to change your management strategy for a greedy goal or profit hunting which is likely to burn the account.
I do not think capital management is needed in the crypto currency trading sphere.
It is needed, buddy!You should have a good management to optimize your funds unless you do not know whether losing or making a profit. Also, funds or money management can minimize trading risks, optimize a chance for higher profits, or avoid severe losses.
Here are some sources to learn it:
- https://www.binoption.net/money-management-on-crypto-trading/
- https://steemit.com/market/@amnezia/money-management-strategy-in-crypto-market
- https://medium.com/@sol_98230/money-management-strategy-in-cryptocurrency-trading-how-to-calculate-the-risk-reward-ratio-and-8b6eb2af1a95
OP, I think this thread should be in Trading Discussion.
I do not think capital management is needed in the crypto currency trading sphere.
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
It is true. Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
But from the word itself, a trader must learn how to manage his capital. And the given thoughts of OP are true as well.
I think it is already given that a trader should know how manage his capital. If he doesn't know the basics, then he can't survive long in the trading market. He will end up losing all his money to the market that he doesn't have the idea to handle with. What the OP stated are basic know-how of a trader. In the trading section here, you can learn more of trading tricks and tips. But if you want to trade a specific coin, you should have at least basic knowledge on the current status of the project.
Things will be learned though in the long-run when a trader starts to lose and takes time to think about what part he's wrong with his traders. Lessons will be learned altogether and mistakes will be corrected following his experience.
I agree that good capital management is important in crypto, just like with the rest of traditional investments. But the thing with crypto market is that it is very volatile, it is a high risk so the first thing you need to learn besides capital management is your risk aversion. So everyone's appetite is very different, you might have good capital management but if you love risk then chances are you are going to loss in short amount of time, just saying.
I do not think capital management is needed in the crypto currency trading sphere.
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
It is true. Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
But from the word itself, a trader must learn how to manage his capital. And the given thoughts of OP are true as well.
I think it is already given that a trader should know how manage his capital. If he doesn't know the basics, then he can't survive long in the trading market. He will end up losing all his money to the market that he doesn't have the idea to handle with. What the OP stated are basic know-how of a trader. In the trading section here, you can learn more of trading tricks and tips. But if you want to trade a specific coin, you should have at least basic knowledge on the current status of the project.
I do not think capital management is needed in the crypto currency trading sphere.
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
It is true. Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
But from the word itself, a trader must learn how to manage his capital. And the given thoughts of OP are true as well. Avoid the trading signals that we usually see because most of them are scams.
I do not think capital management is needed in the crypto currency trading sphere.
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
As much as I would agree with you, I would also debunk your first statement, that capital management is very important. Investing what you can afford to lose is part of capital management.
Also, you already mentioned in the latter part of your statement that people should do their own research, which is one of the keys to k=help in capital management. So, consciously and unconsciously, you are managing your capital.
Although, it should be a deliberate act.
When you divide your trades into grids and you determine the amount per grid, you are also managing your capital.
How effective that management is, will determine the amount of profit you will get per grid.
I do not think capital management is needed in the crypto currency trading sphere.
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
Capital management is really needed in the crypto trade. You can manage your profit to avoid the loss that you can get it from the volatility. as far as i know if this is a really important thing to make sure we can have reserve funds to prevent the dump too. Everyone must able to manage their fund properly. So many expert traders are also doing this dude. Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
Your advice is fairly generalized, if I may add.
Important factors in money management are:
-determining the size of your active deposit;
-identification of risks associated with trade;
-risk analysis and assessment;
-developing actions to reduce risks.
How to determine the size of the deposit? I will give two examples, fixed and deposit percentage.
When fixed, you enter into transactions of the same size.
With deposit percentage you use only a certain percentage of your deposit for each order, as a rule it is 2% -5%.
Important factors in money management are:
-determining the size of your active deposit;
-identification of risks associated with trade;
-risk analysis and assessment;
-developing actions to reduce risks.
How to determine the size of the deposit? I will give two examples, fixed and deposit percentage.
When fixed, you enter into transactions of the same size.
With deposit percentage you use only a certain percentage of your deposit for each order, as a rule it is 2% -5%.
I do not think capital management is needed in the crypto currency trading sphere.
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
Trading is all about risk; without risk there is no gain
Traders go into each trade with a mind to lose; but the confidence to make more profits than the loss.
Always dyor
Having known how to trade , when to trade, what to trade and what not to trade , capital management is a
Very important key in becoming a successful trader. Alot of people make this mistake especially the newbies like me that's why Capital management is crucial in trading, unless you're trading randomly which a serious trader should not do. Alot of people have lost their trading capital more than once which are not even newbies.
An arm of capital management is stop loss usage. It help you to determine your loses so that trades can be closed when it's triggered. When you trade major key points level/pivot point stoploss is important. Many people don't know this that's why am writing to give concrete awareness after doing some study coupled with little trading experience. I hope this helps as many people as it can .
In addition , Below are some simple tips that will help on our journey to becoming a successful trader :
1. Learn how to trade
2. Learn and strategize how to manage your capital
3. Make research on choosing good exchange that will favour your trading.
4. Learn to take profit at intervals
Please add your suggestion for everyone to learn from it. Thank.you
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