Topic: Money Management Principle in bitcoin and altcoin Trading (Read 1460 times)
basically - a competent distribution of the portfolio, usd, btc, eth and other altkoins and also not enter the position for the whole portfolio budget!
I have been trading forex for a while now, one subject in forex trading that I don't want to talk about is money management or risk management. Most time I want to double my capital in a month and because of this I will not follow money management principles. I loss a lot and most at times my entire capital wap out. My question is what is money management?
Learning money and risk management is mandatory as the basic especially in investment and trading business.
Money Management is the process to how take a profit for daily, weekly or monthly with the risk in your business.
How risky to open position in the price now or later? how much i take a profit or cut a lose? if you dont know the answer, actualy you must learning money and risk management.
Money management in trading is kind of technique that will ensure your long run within trading.
Your trading volume and stop-loss levels should be chosen in a ratio based on your trading capital amount.
For example : A trade call which comes with more risk and not suitable for your capital amount then you must avoid that call without trading. That is money management.
Your trading volume and stop-loss levels should be chosen in a ratio based on your trading capital amount.
For example : A trade call which comes with more risk and not suitable for your capital amount then you must avoid that call without trading. That is money management.
That's unfair. When you feel yourself risky or not suitable for profiting just avoiding the trade call is not money management. You make necessary arrangements to grab the profit, though you know its risky is the true money management. Only then growth happens as well high volume trades keeps moving
The strategies only will find out the opportunities of earning and how secure you will be is guaranteed by your money management tactics. But different trader will have the different opinion about money management, but definitely it has nothing to do with your profits/predictions.
Sorry to dig this thread up from the grave, but i have just found it on google & felt compelled to write something 
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Not one post here understands money management.... simply put it is "the % allocation of your capital that you put into each trade".
Most professionals will tell you that 1%-3% of your "bank roll" per trade (or coin) is a good risk strategy.
So for example if you start with $3000 and then decide on a 1% money management strategy, you will put $30 exactly into each coin you buy.
You then need to rebalance your stakes if your "bank roll" increases or decreases.
A 1% strategy will enable you to buy 100 coins
A 3% strategy will enable you to buy 33 coins
"bank roll" = total amount of cash you have
More information about this topic can be found here http://top3cryptoexchange.com/crypto-thoughts/crypto-trading-money-management/
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---------------------->
Not one post here understands money management.... simply put it is "the % allocation of your capital that you put into each trade".
Most professionals will tell you that 1%-3% of your "bank roll" per trade (or coin) is a good risk strategy.
So for example if you start with $3000 and then decide on a 1% money management strategy, you will put $30 exactly into each coin you buy.
You then need to rebalance your stakes if your "bank roll" increases or decreases.
A 1% strategy will enable you to buy 100 coins
A 3% strategy will enable you to buy 33 coins
"bank roll" = total amount of cash you have
More information about this topic can be found here http://top3cryptoexchange.com/crypto-thoughts/crypto-trading-money-management/
.
I have been trading forex for a while now, one subject in forex trading that I don't want to talk about is money management or risk management. Most time I want to double my capital in a month and because of this I will not follow money management principles. I loss a lot and most at times my entire capital wap out. My question is what is money management?
Just my own analogy about money management, by the definition itself it wouldn't differ on how any other management thing is done, it would just be identical in terms of the principle however you're just dealing with money and in this case your own and not the people that usually goes with managing which you handle and works for you so if you don't know the basics of management and failed on money management, you already know what went wrong.
I have been trading forex for a while now, one subject in forex trading that I don't want to talk about is money management or risk management. Most time I want to double my capital in a month and because of this I will not follow money management principles. I loss a lot and most at times my entire capital wap out. My question is what is money management?
you don't have to not do money management in order to make more money.
it all comes down to your skills in managing everything from your emotions to money and risks.
if you start taking well thought risks then you start succeeding. a well though risks is something that you do a little research about and see if the reward is bigger than the risks you are taking and also you have to see all the angles, like what could go wrong and what are the chances of that.
and after all this you have to think about exit strategy meaning what you are going to do if something went wrong like price drop.
you must invest only what you afford to lose. When you are rich, you may get chances to trade with big capital amount, it doesn't mean beyond affordable limit.
Yes, basically managing everything within our control with the respect to our capital amount and the risk levels must be meant by money management. Failures in trading may happen due to improper technical analysis which will not be covered by money management, but proper lot-size and risk levels must be covered money management.
If you invest only what you can afford to lose, you won't hit it big in crypto-trading.
No, it is not working in that way. When you are risking only what you afford to lose, you will get peace of mind for your trading. That will help you to go depth with your technical analysis part. Obviously a strong technical analysis will get you enormous profits.When you are really good and making repeated profits, you can take more calculated risks and invest a bit more than you can afford to lose.
Still you must invest only what you afford to lose. When you are rich, you may get chances to trade with big capital amount, it doesn't mean beyond affordable limit. 
here are the rules i follow:
1) never do any trades unless you are sure about it. which means not buying anything and crossing your fingers for a price rise. you have to be sure about the rise before buying
2) have stop loss. which means selling if price went down to a certain percentage of what you have bought.
3) never go all it. invest what you can afford to lose
4) it is a good idea sometimes to diversify. meaning to buy multiple different altcoins not only one.
These set of rules does really help because im using the same thing when im doing trading and its somehow helpful especially when you are in the middle of a trade. If you are doing this money management is already engaged into it.You must really risk only the money that you can afford to loose but dont just let it gone in an instant thats why we are trading because we do love to make profits. 1) never do any trades unless you are sure about it. which means not buying anything and crossing your fingers for a price rise. you have to be sure about the rise before buying
2) have stop loss. which means selling if price went down to a certain percentage of what you have bought.
3) never go all it. invest what you can afford to lose
4) it is a good idea sometimes to diversify. meaning to buy multiple different altcoins not only one.
Money management is when you try to spend any money that you earn as quick as possible
videogames, pig food, you name it and buy it baby boy
videogames, pig food, you name it and buy it baby boy
Money management in trading is kind of technique that will ensure your long run within trading.
Your trading volume and stop-loss levels should be chosen in a ratio based on your trading capital amount.
For example : A trade call which comes with more risk and not suitable for your capital amount then you must avoid that call without trading. That is money management.
Your trading volume and stop-loss levels should be chosen in a ratio based on your trading capital amount.
For example : A trade call which comes with more risk and not suitable for your capital amount then you must avoid that call without trading. That is money management.
That's unfair. When you feel yourself risky or not suitable for profiting just avoiding the trade call is not money management. You make necessary arrangements to grab the profit, though you know its risky is the true money management. Only then growth happens as well high volume trades keeps moving
The strategies only will find out the opportunities of earning and how secure you will be is guaranteed by your money management tactics. But different trader will have the different opinion about money management, but definitely it has nothing to do with your profits/predictions.
here are the rules i follow:
...
3) never go all it. invest what you can afford to lose
...
...
3) never go all it. invest what you can afford to lose
...
If you invest only what you can afford to lose, you won't hit it big in crypto-trading.
When you are really good and making repeated profits, you can take more calculated risks and invest a bit more than you can afford to lose.
Money management in trading is kind of technique that will ensure your long run within trading.
Your trading volume and stop-loss levels should be chosen in a ratio based on your trading capital amount.
For example : A trade call which comes with more risk and not suitable for your capital amount then you must avoid that call without trading. That is money management.
Your trading volume and stop-loss levels should be chosen in a ratio based on your trading capital amount.
For example : A trade call which comes with more risk and not suitable for your capital amount then you must avoid that call without trading. That is money management.
That's unfair. When you feel yourself risky or not suitable for profiting just avoiding the trade call is not money management. You make necessary arrangements to grab the profit, though you know its risky is the true money management. Only then growth happens as well high volume trades keeps moving
The strategies only will find out the opportunities of earning and how secure you will be is guaranteed by your money management tactics. But different trader will have the different opinion about money management, but definitely it has nothing to do with your profits/predictions.
here are the rules i follow:
1) never do any trades unless you are sure about it. which means not buying anything and crossing your fingers for a price rise. you have to be sure about the rise before buying
2) have stop loss. which means selling if price went down to a certain percentage of what you have bought.
3) never go all it. invest what you can afford to lose
4) it is a good idea sometimes to diversify. meaning to buy multiple different altcoins not only one.
1) never do any trades unless you are sure about it. which means not buying anything and crossing your fingers for a price rise. you have to be sure about the rise before buying
2) have stop loss. which means selling if price went down to a certain percentage of what you have bought.
3) never go all it. invest what you can afford to lose
4) it is a good idea sometimes to diversify. meaning to buy multiple different altcoins not only one.
I have been trading forex for a while now, one subject in forex trading that I don't want to talk about is money management or risk management. Most time I want to double my capital in a month and because of this I will not follow money management principles. I loss a lot and most at times my entire capital wap out. My question is what is money management?
The things I bolded in your post are contradicting each other. If you have been trading forex for a while now then you should have at least learned that having a strategy for managing your money is a must. This makes me think that you are either really new to trading or just a person with a gambling problem who sees forex trading as one giant casino.
I have been trading forex for a while now, one subject in forex trading that I don't want to talk about is money management or risk management. Most time I want to double my capital in a month and because of this I will not follow money management principles. I loss a lot and most at times my entire capital wap out. My question is what is money management?
The things I bolded in your post are contradicting each other. If you have been trading forex for a while now then you should have at least learned that having a strategy for managing your money is a must. This makes me think that you are either really new to trading or just a person with a gambling problem who sees forex trading as one giant casino.
money management is the way you spend your expenses and how you budgeting your money in investment, but if you have a skill and experience money management is not too important, when you know you will earn big profit you don't need to hold back your money, but if you are still training and still in the middle of training or you don't sure about the trading result then you need to learn how to manage your money, how much you can spend your money in one time trading
from my experience in trading for about 8 years, market movement is almost unpredictable. Most time there are many fundamental issue even technical issues that changes market detection.money management is the way you spend your expenses and how you budgeting your money in investment, but if you have a skill and experience money management is not too important, when you know you will earn big profit you don't need to hold back your money, but if you are still training and still in the middle of training or you don't sure about the trading result then you need to learn how to manage your money, how much you can spend your money in one time trading
from my experience in trading for about 8 years, market movement is almost unpredictable. Most time there are many fundamental issue even technical issues that changes market detection. 
money management is the way you spend your expenses and how you budgeting your money in investment, but if you have a skill and experience money management is not too important, when you know you will earn big profit you don't need to hold back your money, but if you are still training and still in the middle of training or you don't sure about the trading result then you need to learn how to manage your money, how much you can spend your money in one time trading
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I have been trading forex for a while now, one subject in forex trading that I don't want to talk about is money management or risk management. Most time I want to double my capital in a month and because of this I will not follow money management principles. I loss a lot and most at times my entire capital wap out. My question is what is money management?
i think money management is about how much we want to spend our money when we want to make trading, how much profit will we want to make it because when we got much of profit then we want it more big again even if we got it and i will called this situation with too greedy that we want to get big profit. so i think better we control ourself when we can make profit and don't take too much because we can be too greedy and we could be loss in profit.
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