Minimizing the risk- How much possible it is? - page 4.

Janation

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Quote from: sisule on January 28, 2020, 10:05:44 PM

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

You never know what may happen.

The volatile price market is so hard to manage, that is why we can't really predict or manage our investments so well. You never know when will be the lowest and when will be the highest, so we just do what we can do. If you want to diversify your investments, better stick to some known cryptocurrencies to avoid scams.

coinfinger

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Quote from: salkan3 on February 03, 2020, 04:45:59 PM

Stop loss and take profit are essential for managing risk.

I am not an experienced trader but there is no such max loss and max profit scenario in crypto trading, for example you bought ETH an year ago you cannot predict what would be the max price that ETH can raise and what's the worst it can give. I mean this has been the prospect with crypto trading that you are never certain whats the best price to sell/buy.

Another example is when bitcoin price rises we are never sure when to sell some and when to buy some.

Quote from: wozzek23 on February 03, 2020, 02:26:36 PM

Basically, to minimize the risk I just opt for reputed trading pair rather than going with new or unknown trading pairs.

But, the reputed pairs won't give you too much of a chance for profit because they are already stable and you are either a big time holder who can wait months for the pairs to move enough to juice out profits.

KnightElite

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Quote from: RealMalatesta on February 06, 2020, 08:00:58 AM

Quote from: wozzek23 on February 03, 2020, 02:26:36 PM

Calculated risk is my favorite way of eliminating unnecessary risks associated with my trading. It means I will choose a signal based on how big the stoploss level, it will be having. When the stoploss is not within my affordable level, I will just skip that signal regardless of how much profit it will be promising or even it will be from reputed signal generating agents.

Trading always requires estimations and calculations to handle risks which will be the launchpad for getting you into profits zone. It must be a good idea to skip the signals which are not compliant with your risk-reward calculations. When I was new to trading, I was deliberately looking for signals so once I get them, without calculating anything I will simply enter and then lost all of my capital. When we are not calculating our risks then losing all the capitals will be the only result we may need to face.

Trading must be having lots of aspects and ensuring each and every aspect is difficult for most of the traders and this is the reason trading is not profitable for many traders. At least we must focus on minimizing the risk so that we can sustain with trading and when we are staying with trading for longer duration than we can slowly start seeing profits.

Understanding the market can reduce the risks, traders are usually trading without relying in any kind of analysis. They are just buying and selling because they got hyped. We should not become any of those traders because it only means that the trader have poor risk management. Understanding the market can help us to minimize the risks where we can lessen the losses that we may get and also to maximize our profit. We should become a trader who are focusing in risk management first than to earn profit because we will not become a succeful trader without risk and management.

adzino

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Quote from: atjiat on February 07, 2020, 01:07:08 PM

In fact, it seems to me that each trader can perceive in his own way the possibility of minimizing risk, since one trader can use only up to 5% of his asset for trading, so as not to risk large amounts of his funds. Someone can study the charts of their coins more carefully in order to timely change their trading plans for other coins. And this can also be called risk minimization. In addition, an example is the procedure for converting any cryptocurrency asset to USDT during the fall of the cryptocurrency market.

Just reading charts won't help a user to reduce risk and make quick profit. In fact, following the chart might cause more losses than profit. The charts always don't help since the prices of crypto currencies are unpredictable due to its volatility. The prices of altcoins are even more volatile than bitcoin. Any external event can have huge impact on the prices of crypto currency.
The only possible way to minimizing risk is to play safe by investing on well known coins and holding it for the long run.

atjiat

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In fact, it seems to me that each trader can perceive in his own way the possibility of minimizing risk, since one trader can use only up to 5% of his asset for trading, so as not to risk large amounts of his funds. Someone can study the charts of their coins more carefully in order to timely change their trading plans for other coins. And this can also be called risk minimization. In addition, an example is the procedure for converting any cryptocurrency asset to USDT during the fall of the cryptocurrency market.

fullhdpixel

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Quote from: Becky666 on February 06, 2020, 09:48:15 AM

Practically, you are right because today's market has an answer to this. There are many surge and the most are from the altcoins that we never believed to be called coins. Trading has made me to adopt a method that has potential to handle risk, I mean potential risk. Whenever I trade with altcoins, I usually pick my profit at 2-4%. This is how I possibly minimize my risk.

Speaking as such I made some resolutions that help me in trading. For example, I promise myself to never trade an altcoin that has been in the market for less than 2 months. I know I miss a lot of big earning opportunities but at the same time I don't make big loss either as I used to earlier, there are lot of pump groups in telegram that actually made me feel like this coin is going to be pumped very soon but thankfully with time I learned that "no one will ever serve you food on plate" you have it do it yourself and anyone who says they will pump a coin are doing nothing but getting their coins sold by creating such hype.

So, my simple method to minimize risk - Just don't trade new pairs and don't expect too much profits from the heavy pairs like ETH/BTC won't fluctuate too much so just keep making smaller but regular profits.

Becky666

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Quote from: Oceat on February 06, 2020, 03:48:10 PM

Quote from: Becky666 on February 06, 2020, 09:48:15 AM

Quote from: Bagaji on January 28, 2020, 04:48:17 PM

I don't agree with you on the ground that apart from Bitcoin all others are shitcoin. In as much as I strongly believe in Bitcoin I also do believe in coin like ethereum and I don't think it will right for anyone to refer to ethereum as a shitcoin. Although, you were not specific about ethereum.

Practically, you are right because today's market has an answer to this. There are many surge and the most are from the altcoins that we never believed to be called coins. Trading has made me to adopt a method that has potential to handle risk, I mean potential risk. Whenever I trade with altcoins, I usually pick my profit at 2-4%. This is how I possibly minimize my risk.

With the risk present in Bitcoin and the unpredictable volatility movement makes it more hard to earn a profit, what more with the altcoins? So it is really important to minimize the risk as much as possible there is a chance to get that profit. Whatever convenience you find just to minimize the risk, just take it and you will be grateful of what you choose even if it isn't enough.

Since the bull run started, the profit desired by any trader who can be realizable only if the trader can stick to 2 - 4%. Just for your information, four days ago I made a good profit from livecoin.net with GUIDE tokens, most problems we traders had or have is greediness to take profit. Altcoins have good profits if you can research into a token before heading for purchase, trading like gambling cannot yield any useful results for any trader.

Oceat

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Quote from: Becky666 on February 06, 2020, 09:48:15 AM

Quote from: Bagaji on January 28, 2020, 04:48:17 PM

I don't agree with you on the ground that apart from Bitcoin all others are shitcoin. In as much as I strongly believe in Bitcoin I also do believe in coin like ethereum and I don't think it will right for anyone to refer to ethereum as a shitcoin. Although, you were not specific about ethereum.

Practically, you are right because today's market has an answer to this. There are many surge and the most are from the altcoins that we never believed to be called coins. Trading has made me to adopt a method that has potential to handle risk, I mean potential risk. Whenever I trade with altcoins, I usually pick my profit at 2-4%. This is how I possibly minimize my risk.

With the risk present in Bitcoin and the unpredictable volatility movement makes it more hard to earn a profit, what more with the altcoins? So it is really important to minimize the risk as much as possible there is a chance to get that profit. Whatever convenience you find just to minimize the risk, just take it and you will be grateful of what you choose even if it isn't enough.

Mahanton

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Quote from: vintages on February 06, 2020, 08:54:07 AM

Just because it works for stock investment does not means, it will work for cryptocurrency trading.
Every thing about crypto is just unpredictable. And its funny to say that the time or period we think that the there won't be price increase, it might suddenly skyrock. If best, stop listening to price prediction, and follow your instinct. Many of those predictor have ended up misleading. Make research of coins, and stick to three of them.

It isnt bad for you to get up some reference on other traders or analyst but be sure that your own analysis would be followed in the end of the day so that you wont end up regretting if price do go on opposite way.
Its true that traditional markets like forex and stocks is totally different from cryptocurrencies but the overall concept is just the same, they do only differ on volatility and security matters.
Minimizing risk is always the main priority it will just depend or vary on individuals technique and some sort or mix of intuition or instincts.

Assface16678

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Quote from: vintages on February 06, 2020, 08:54:07 AM

Just because it works for stock investment does not means, it will work for cryptocurrency trading.
Every thing about crypto is just unpredictable. And its funny to say that the time or period we think that the there won't be price increase, it might suddenly skyrock. If best, stop listening to price prediction, and follow your instinct. Many of those predictor have ended up misleading. Make research of coins, and stick to three of them.

One of the fastest-growing earning today is with the use of crypto currency, and many people would like to make some investment to this because they know the potential of the coins to increase and give a lot of market profit. Before we start and dive in into the crypto world always make sure that we are ready and fully prepared of knowledge, one of the key to success is to have a lot of experience and skills that is related into the crypto world you can use this as an advantage to the other trader and win your trades. Even we are skillful at trading still, it is too hard to predict the market movement of the crypto because we all know that the market price of it is very volatile and many factors why does the amount of it goes up and down. I think one of the best solutions to avoid loss of income is always seeking for the information and decide on your own because today nothing can predict the market and it is all about you and your decision what will happen if you are going to earn a profit or not. Crypto is full of risk and luck too.

Becky666

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Quote from: Bagaji on January 28, 2020, 04:48:17 PM

I don't agree with you on the ground that apart from Bitcoin all others are shitcoin. In as much as I strongly believe in Bitcoin I also do believe in coin like ethereum and I don't think it will right for anyone to refer to ethereum as a shitcoin. Although, you were not specific about ethereum.

Practically, you are right because today's market has an answer to this. There are many surge and the most are from the altcoins that we never believed to be called coins. Trading has made me to adopt a method that has potential to handle risk, I mean potential risk. Whenever I trade with altcoins, I usually pick my profit at 2-4%. This is how I possibly minimize my risk.

vintages

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Just because it works for stock investment does not means, it will work for cryptocurrency trading.
Every thing about crypto is just unpredictable. And its funny to say that the time or period we think that the there won't be price increase, it might suddenly skyrock. If best, stop listening to price prediction, and follow your instinct. Many of those predictor have ended up misleading. Make research of coins, and stick to three of them.

danherbias07

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Quote from: RapTarX on January 27, 2020, 11:17:59 AM

Let's say; Coin A has a positive correlation of 0.89 against BTC price & Coin B has a negative correlation of 0.89 against BTC price.

Are we safe to say investing on both these coins are minimizing the risk; provided that I will have a good research on both these projects to ensure that these are not shitcoins? Ignore the fact that all coins without BTC is a shit (Note for bitcoin enthusiasts).

I love the last part because it is the truth.
Is it minimizing the risk or just an equalizer?

I don't get it. If you will waste effort into researching for one project then you could stay there.
If you make it two then you are just risking more. Right?
Or, it could both profit if done right.
There is always risk on both side even if you put so much positive attitude in it.

RealMalatesta

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Quote from: wozzek23 on February 03, 2020, 02:26:36 PM

Calculated risk is my favorite way of eliminating unnecessary risks associated with my trading. It means I will choose a signal based on how big the stoploss level, it will be having. When the stoploss is not within my affordable level, I will just skip that signal regardless of how much profit it will be promising or even it will be from reputed signal generating agents.

Trading always requires estimations and calculations to handle risks which will be the launchpad for getting you into profits zone. It must be a good idea to skip the signals which are not compliant with your risk-reward calculations. When I was new to trading, I was deliberately looking for signals so once I get them, without calculating anything I will simply enter and then lost all of my capital. When we are not calculating our risks then losing all the capitals will be the only result we may need to face.

Trading must be having lots of aspects and ensuring each and every aspect is difficult for most of the traders and this is the reason trading is not profitable for many traders. At least we must focus on minimizing the risk so that we can sustain with trading and when we are staying with trading for longer duration than we can slowly start seeing profits.

salkan3

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Stop loss and take profit are essential for managing risk.

Before you enter a position, you want to know exactly how much you can lose (in worst case) and how much you can win (in best case).

I'm not sure if you are familiar with the exchange called mushino, but they allow you to do exactly that.

There you can attach a stop and take profit to your position and they will show you how much you can lose and how much you can win.

It's really great for risk management. Especially when playing on high-ish leverage.

wozzek23

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What you are talking about correlation is completely a new thing to me even I am into different asset trading for more than five years. Basically, to minimize the risk I just opt for reputed trading pair rather than going with new or unknown trading pairs.

Calculated risk is my favorite way of eliminating unnecessary risks associated with my trading. It means I will choose a signal based on how big the stoploss level, it will be having. When the stoploss is not within my affordable level, I will just skip that signal regardless of how much profit it will be promising or even it will be from reputed signal generating agents.

bitgolden

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It might actually be beneficial in the stock markets as the markets there are not much volatile and hence the two correlated shares would always go in their opposite direction not in much value which might give you minimal risk but surety of profits.

But, considering this in cryptocurrency markets I do not really think we might be able to find 2 or more coins which are negatively correlated to each other because of the high volatility markets. You might end up in loss if you purchase 2 such coins because usually in cryptocurrency patterns, the graphs move almost similarly and once we enter the bull or bear markets, each graph starts moving similarly following the trend.

AniviaBtc

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Quote from: sisule on January 28, 2020, 10:05:44 PM

Quote from: Maslate on January 28, 2020, 05:15:56 PM

Quote from: DoublerHunter on January 28, 2020, 12:52:03 PM

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

How to minimize the risks with trading in bitcoin and altcoin just buying bitcoin during have lower price and never buy after price is on the top, you will get chance to be lost much money after buying some coin have been on the top price, although many recommendation to buy but never take mistake with buying on higher price.

That's not minimizing risk, the question is after you buy bitcoin in a lower price, until when you will hold it? Because everyone knows that market is very uncertain and bitcoin is very volatile. You should know that at first, and that's still risky if you buy bitcoin now. It is very hard to make a decision when you know that altcoins are not that effective to be used as an alternative to bitcoin. Some altcoins are shitcoins, that's why it is not easy to make plans and strategies. All you have to do is observed the price movement on the market, it will serve us your guide for you to make plans and do good decisions while waiting for the price of bitcoin to rise again. Everyone is waiting for that to happen, but let's expect the unexpected.

panganib999

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Quote from: Maslate on January 28, 2020, 05:15:56 PM

Quote from: DoublerHunter on January 28, 2020, 12:52:03 PM

I don't really see it as an effective way to minimize risk on your trading. I used to practice altcoins diversification, made my research and boom, I just had the best shitcoin and another one on my asset portfolio. There is a lot of coins out there that could convince you easily as the writers being literate and a very convincing project. But it often turns out to be shitcoins.
Nevertheless, two altcoins probably enough as options to take your investment with (top 10 on CMC is proven). Monitoring the amount is enough and at least you were able to minimize your risk.

I don't prefer having altcoins in trading just to minimize the risks. Risks will always be there. I would rather focus trading in bitcoin because i know it will ensure a positive result more than an altcoin can do. Diversification would bring a profitable result if you don't end up having shitcoins.

That's right because most of the altcoins tend to be a shitcoins. Don't trust any coins because the demand of coins will always based on the market. That's why always observed the happenings in the market and make a technical analysis about it for you to know your next strategies or steps. But if you're no into an altcoin, then focus on the most popular and reliable coin, bitcoin. But we're still under the process of holding and hoping that bitcoin will again reach a $10k like its price in 2017. Everything is risky, but we also need to grab the opportunity when it is certain or not.

sana54210

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Shitcoin is not about the price, its about the level of quality of a coin. You may have bought ethereum at 9 dollars and sold at 1400 dollars and you may call it not a shitcoin but I can tell you there has been a ton of people who bought nano at cents and then when it reached 30+ dollars they sold and they still think its a shitcoin right now.

You may also have bought ethereum at 1400 dollars and had to sell when it was 80 dollars and it still doesn't make it a shitcoin, there are a ton of people who bought bitcoin at 20k and had to sell at 3k and even they wouldn't call bitcoin the OG real coin a shitcoin neither. So, as long as a coin has good quality, they are not shit coin, irrelevant to the movement of that coin up or down.

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