Minimizing the risk- How much possible it is? - page 2.

sana54210

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Quote from: Dart18 on February 15, 2020, 10:27:52 AM

IMO, as long as I profit with bitcoin then I think I am fine with that.

Pairing is something that many newbies are making errors.
You pair BTC with an altcoin (not a stablecoin) then what do you really want in return? Do you want to pack yourself with more BTC or that altcoin which you have used for the trading process.
With stable coins too it is different.
Some do prefer USDT in profit for a lower risk, in fact no risk of volatility. Then some want to grow their wallets with more BTC for future exchange.

That is a problem that many of the newbies will face because they see a lot of people profiting and they want to do the same but they do not realize that they can't make the same amount of profit or even same amount of % profit with the veterans of the market, those people have given months or possibly years to the market to figure out how things work, some of them came in here from years of forex trading experience and also gave years of experience to crypto and now they are good and it is normal that they may do stuff that looks like risky and people do not realize they are very risky because they are new and think that is normal but in reality those risks are less risky when you are a professional who became veteran of the market. That is really the dangerous spot.

deisik

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Quote from: DevilSlayer on February 14, 2020, 02:25:31 AM

There are a lot of factors that should be considering in order to lessen the risks in trading. First we must identify first what type of trader are we, are we passive trader or are we a active trader? By identifying that, we can knownwhat type of strategy that is applicable to use. Strategies of long term and short tern trader are not the same so it is better if we will know what type of trader are we

It mostly works the other way around

We can identify our stance (long or short term) based on actual strategies and approaches we use. This is what counts in the end, while the specific type of trader that we drift to is of no particular importance. We can be actively trading one coin in the short term, while passively holding another for the long term

Quote from: DevilSlayer on February 14, 2020, 02:25:31 AM

Diversification is also matter and be sure that do not invest all of your money in just 1 coin

Diversification is meaningless with crypto. If you want to reduce risks (as this is what diversification essentially comes down to), simply buy Bitcoin and forget about altcoins

madnessteat

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Quote from: RapTarX on January 27, 2020, 12:17:59 PM

~snip~

Investing in altcoins is a very risky activity, no matter how it correlates to bitcoin. Things can change in an instant. I would advise you to learn more about technical analysis, as the market is a game on the probability of price movements. The market is controlled by a crowd, which is more focused on technical analysis, and the crowd is controlled by major players of this market.

ultrloa

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Quote from: Mumbeeptind1963 on February 25, 2020, 08:30:50 PM

Quote from: bitbunnny on February 19, 2020, 06:44:13 PM

Quote from: MWesterweele on February 19, 2020, 05:14:45 PM

Quote from: bitbunnny on February 17, 2020, 09:53:18 AM

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to hold or to trade it especially when the market is dump and dump.

Yes, decision making is another very important capability that some traders don't have. Especialy making decision under pressure and not to turn to panic and making decision fast and deficit. But that is also something that could be learned with time and comes with experience. So someone who doesn't know the market and how it's functioning and how to see a broader picture, who hasn't experienced loss usually doesn't know how to make right decision.

To minimize the risk you should have enough knowledge about trading because when youre in the situation you will know what the right thing to do, but since some of traders choose to do overtrade because they want to take the opportunity to trade even they also lose a lot they still continue to trade. Although tthey win sometime but still the risk is always take over particularly without discipline in trading.

In short you must know the coin or token you want to trade since if you do a random buys in the market then a chance for you to lose if you are not attended and we must be prepared when going to trade since the information regarding on the coin we want to accumulate is really helpful for us to earn on long term also in short term trades.

maydna

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Quote from: Mumbeeptind1963 on February 25, 2020, 08:30:50 PM

To minimize the risk you should have enough knowledge about trading because when youre in the situation you will know what the right thing to do, but since some of traders choose to do overtrade because they want to take the opportunity to trade even they also lose a lot they still continue to trade. Although tthey win sometime but still the risk is always take over particularly without discipline in trading.

Perhaps, if they know about how much they should use to trade and always follow their own rule, it will help them to reduce the risk. The risk will still there in trading, but the problem is sometimes we break our rule because we want to chase bigger profit. That will not be good if the market cannot move up and down so we can miss the chance to buy low and sell high. So far, the market still up and down, but in a few weeks, it seems the market still going down, and we don't know when it's over. But if we can manage the money, we don't have to afraid to face the risk because we know how to deal with that risk.

Mumbeeptind1963

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Quote from: bitbunnny on February 19, 2020, 06:44:13 PM

Quote from: MWesterweele on February 19, 2020, 05:14:45 PM

Quote from: bitbunnny on February 17, 2020, 09:53:18 AM

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to hold or to trade it especially when the market is dump and dump.

Yes, decision making is another very important capability that some traders don't have. Especialy making decision under pressure and not to turn to panic and making decision fast and deficit. But that is also something that could be learned with time and comes with experience. So someone who doesn't know the market and how it's functioning and how to see a broader picture, who hasn't experienced loss usually doesn't know how to make right decision.

To minimize the risk you should have enough knowledge about trading because when youre in the situation you will know what the right thing to do, but since some of traders choose to do overtrade because they want to take the opportunity to trade even they also lose a lot they still continue to trade. Although tthey win sometime but still the risk is always take over particularly without discipline in trading.

bitbunnny

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Quote from: MWesterweele on February 19, 2020, 05:14:45 PM

Quote from: bitbunnny on February 17, 2020, 09:53:18 AM

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to hold or to trade it especially when the market is dump and dump.

Yes, decision making is another very important capability that some traders don't have. Especialy making decision under pressure and not to turn to panic and making decision fast and deficit. But that is also something that could be learned with time and comes with experience. So someone who doesn't know the market and how it's functioning and how to see a broader picture, who hasn't experienced loss usually doesn't know how to make right decision.

MWesterweele

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Quote from: bitbunnny on February 17, 2020, 09:53:18 AM

There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Avoiding risk in trading is impossible due to unsteady value of coins but it can be manage by making undertand all thing about it have strategy ang manually checking of market. Decision making is also helpful to trader because they need to learn when its better to hold or to trade it especially when the market is dump and dump.

bitbunnny

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There is no way to avoid risk completely but you need to know how much risk is acceptable for you. By making due.dilligence and with learning, collecting as much information as you can and by diversifying your portfolio you can minimize the risk. But we always prepared to losses.

Innerpumper

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The good thing about trading is your own predictions. Although I cannot maximize the gains that I can from trading, I am properly minimizing the risk of big losses happening. So many predictions that are on the website and the channel (paid channel) makes us follow what they do, so we will never settle when they show the results of their profits. With its own predictions at least not add us into greed. Just enough to know where the trendline, support, resist, this is enough when we enter and when we take profit.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: quality.crypto on February 15, 2020, 02:20:07 AM

Exactly, most of the experience will not bother about the risk because managing funds are always good in order to reduce the loss. So without calculation, it is impossible for a trader to make a profit, we need to restrict ourselves otherwise, we are going to lose a huge amount of money.

It is important to gain experience but it does not mean the risks will reduce. Managing funds is one thing but going broke and not having enough bankroll to spend with checks is a tough thing. For any trader readily available cash is important too. They want to take every opportunity at making money but then again they need to keep bankroll in check. So it boils down to how much risk they are willing to take and how many trades then are executing.

You may play the long game and work with smaller portfolio with a big capital. That is good for most traders.

FanEagle

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Diluting your investment has always been a topic in investment but people forget that you should divide it into multiple sectors and not just multiple stuff in that sector. If you are 100% crypto, that doesn't mean that you could just have 100 coins and somehow you divided your money, or if you have 100 different stocks doesn't mean you are 100% dividing it. You literally have to put money into multiple different things to make up that difference.

Just to give an example, put it 20% on crypto, 30% on stocks, 20% on precious metals (gold/silver) and if you can even real estate if you can (doesn't matter if it is a small parcel in some god forsaken land just so it is cheap, because even that gains value), those type of diversification is important and not just diversification in one market.

justdimin

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I would agree that devilslayers comment is definitely one of the best I have ever seen in the bitcoin risk management topic, however even tho it is one of the best it still lacks a bit of "knowledge" parts of it, not that it doesn't talk about them but it talks about them in short terms instead of explaining them.

Nobody would really get hyped about this topic enough to write it but if you talked about all the risk management and what could be done you would probably write a 60 page novealla level book on the subject just to talk about how to use the proper functions at exchanges to lower your risk levels so I understand why nobody can, it doesn't worth it when there would be a total of 4 people who would read it, so what would the point. Excluding anyone doing that, I think next best thing is devilslayers comment.

Dart18

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IMO, as long as I profit with bitcoin then I think I am fine with that.

Pairing is something that many newbies are making errors.
You pair BTC with an altcoin (not a stablecoin) then what do you really want in return? Do you want to pack yourself with more BTC or that altcoin which you have used for the trading process.
With stable coins too it is different.
Some do prefer USDT in profit for a lower risk, in fact no risk of volatility. Then some want to grow their wallets with more BTC for future exchange.

quality.crypto

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Quote from: mbakruroh on February 14, 2020, 03:36:36 AM

Quote from: RapTarX on January 27, 2020, 12:17:59 PM

Lately, I am thinking of spending more time into trading. Until now, I was a part time trader (actually holder) looking into only a few top ranked coins. Now, I have decided to go deep and try to make some profit.

First you already go into next level, congratulations. Chance to win ( possibility ) is same 50 - 50 but by using management risk it will not giving you bigger profit but saving you from bigger lost. Most people avoid it because must doing calculation and fit it with their target and money, that wasting time. Protection is our priority, use it and profit is our prize.

Exactly, most of the experience will not bother about the risk because managing funds are always good in order to reduce the loss. So without calculation, it is impossible for a trader to make a profit, we need to restrict ourselves otherwise, we are going to lose a huge amount of money.

Twentyonepaylots

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Quote from: DevilSlayer on February 14, 2020, 02:25:31 AM

There are a lot of factors that should be considering in order to lessen the risks in trading. First we must identify first what type of trader are we, are we passive trader or are we a active trader? By identifying that, we can knownwhat type of strategy that is applicable to use. Strategies of long term and short tern trader are not the same so it is better if we will know what type of trader are we. The second is we should be prepared on unexpected situation because it is a game of probability where there are always chances of winning and losing.

We should also focus on our risk and management, it is the best way if we want to lessen the risks in trading. We should always have a plan before a trade where we can create tactics and specially cut loss strategy. Diversification is also matter and be sure that do not invest all of your money in just 1 coin. Spread it in 3-5 altcoins because it is the preferable diversification. We cannot totally remove the risks but we can lessen it if we really understand the market and if we know what we are doing.

This is pretty much the things that every trader should keep in mind. Everything summed up in one comment. This not only minimizes the risk you are to suffer as a trader but this also leverages the chances of you getting big profits in the crpyotcurrency trading world. If I could just add one thing, I'd include to not buy or sell impulsively. Observe the graphs and the market. If you don't know how to read graphs there are free videos to watch that'll help you gwt a deeper understanding. It's hard to predict cryptocurrency prices but if you are saving a relatively stable coin, then this will help. For volatile coins reading charts and news could give ypu valuable insights on what step to take next. That way you can reliably purchase or sell a cpin if you must.

mbakruroh

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Quote from: RapTarX on January 27, 2020, 12:17:59 PM

Lately, I am thinking of spending more time into trading. Until now, I was a part time trader (actually holder) looking into only a few top ranked coins. Now, I have decided to go deep and try to make some profit.

First you already go into next level, congratulations. Chance to win ( possibility ) is same 50 - 50 but by using management risk it will not giving you bigger profit but saving you from bigger lost. Most people avoid it because must doing calculation and fit it with their target and money, that wasting time. Protection is our priority, use it and profit is our prize.

DevilSlayer

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There are a lot of factors that should be considering in order to lessen the risks in trading. First we must identify first what type of trader are we, are we passive trader or are we a active trader? By identifying that, we can knownwhat type of strategy that is applicable to use. Strategies of long term and short tern trader are not the same so it is better if we will know what type of trader are we. The second is we should be prepared on unexpected situation because it is a game of probability where there are always chances of winning and losing.

We should also focus on our risk and management, it is the best way if we want to lessen the risks in trading. We should always have a plan before a trade where we can create tactics and specially cut loss strategy. Diversification is also matter and be sure that do not invest all of your money in just 1 coin. Spread it in 3-5 altcoins because it is the preferable diversification. We cannot totally remove the risks but we can lessen it if we really understand the market and if we know what we are doing.

hahay

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Quote from: mersal on February 12, 2020, 03:29:31 PM

As long as we are choosing the best crypto currencies the risk factor gets reduced in long term trading but for short term it is still relevant so trade based on btc value or USD value and try to make more reap for that day then think about moving to another coin if it becomes less volatile or lost interest from more crypto traders which can be identified by watching their daily traded volumes.

After all, when you have chosen the best coins it is very likely that demand will not decrease so that price movements will always occur there, if so then come back to yourself, whether you can be consistent or not, because when you are easy to be pessimistic then the risk of loss will be bigger than before.

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Quote from: Negotiation on February 11, 2020, 06:51:44 AM

I agree with you that once the damage is done it's much harder to reduce it That's why I also try to avoid risk in the workplace For this reason I control my emotions and base my education in various places and then trade. Many times it is not possible to reduce a single loss.

Controlling your emotions is not enough.

You should also control the money you are investing in a certain cryptocurrency. Emotion is not always a problem in trading. With this kind of market that is so volatile, you don't know what may happen so it will really start with what you know and how you can manage your balance in this fast phase market.

Topic: Minimizing the risk- How much possible it is? - page 2. (Read 824 times)