Proper risk management? | Bitcointalksearch.org

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Quote from: Ararbermas on February 20, 2022, 06:11:14 PM

...60 wins 40 losess you still have an amazing winrate as long as you have a proper risk management..

In this case, it is a good result that the number of profitable trades is greater than the number of unprofitable ones. But as I understand it, losing trades are not limited to stop loss, so the loss is comparable in size to profitable trades. It would be better if they had a lower value compared to profitable trades.

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Quote from: sumant on March 07, 2022, 07:38:46 AM

In crypto risk in trading is big thing to manage. As I understand emotional person can not control risk because emotions does full time job in our body, one trading going down or up millions of emotions going throughout. Control emotions. Next thing is not in hurry to buy anything means out of market is safe place. Third is play on big players like BTC, Eth, BSC etc to minimize risk. Forth is not put all money at one place you will always get loss. Trading is very simple in looking but very hard in doing specially cryptocurrencies.

That is by far the biggest problem that newbies have with this market, in theory trading is an activity that is incredibly simple, the only thing you need to do to earn a fortune in the markets is to buy a coin at a cheap price and then sell it for an higher price, nothing could sound easier than that, however since everyone is striving to achieve the same goal then this means that the markets are extremely competitive and any edge no matter how small can mean the difference between becoming a winning trader or a losing one, which is why we need to strive to learn as much as we can before we even enter the markets.

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Quote from: Oshosondy on February 21, 2022, 03:20:12 AM

Thay can be helpful in trading, but emotion is very important aspect to face while trading. Risk management in this case can be helpful for people that are trading several coins at a time, this is common in forex trading. Since I have been trading cryptocurrencies, I noticed their price move in the same direction, I prefer to choose just one coin and which is bitcoin.

What I am trying to say is that risk management is beyond using app or any software that will calculate the percentage wining and losses, it is also about mindsets and emotions about opening and closing a trade at the appropriate time.

It will surely be a big help, especially to those who are having a hard time managing their funds. It will be a big help for us to handle our trading journey appropriately but yes, handling our emotions would also be pur first priority since that will have a huge impact on our trading life. Managing and handling all the aspects that affect our trading journey is an advantage for us to gain the profit that we want without panicking no matter what the market situation is.

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Quote from: Fatunad on March 08, 2022, 06:03:53 PM

It would really be a long time and this is something that you couldnt able to get it out within few months or even on a year later which means that developing these risk management skills wont be simply but also
not impossible for you to commit out so it would really vary.Risk management is crucial when it comes to investment because it do matter on how you do handle out decisions whether you do take profits
or would be basically buying out coins depending on the opportunity that you are seeing.

There are things out there people say you could master with 10 thousand hours of doing it. Like for example, if you want to learn how to play the piano, you won't be good on your first ever hour, you will just learn what the notes means, but on your 10th thousand hour, you will be playing mozart like it is back of your hand without a problem, obviously there will be other people who are better than you, but you won't suck and you will be great at it, maybe even make money from it.

For some reason, people think that trading is different, like somehow you could spend maybe maximum of 100 hours and suddenly be great at it. It is no different than piano, on your first hour of trading, you won't even trade and just learn the terms but on your 10th thousand one you will be trading leverage in minute candlesticks and making profit.

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Quote from: Captain Corporate on March 07, 2022, 02:00:20 PM

Quote from: Hamphser on March 07, 2022, 01:40:09 PM

Mastering those three does take a long time. If you are not good at it at first, or even after a year or two, do not be worried. People may see your message and think that you need have all three locked down before they could be a good trader, but that is not the case, you can still be a good trader without being masters on all of those. The only difference is, if you managed to master them, then you REALLY do become a great one, like unbelievable one. So they are very important, they are the decider between "this is my full-time job now" versus "I am making money from it", and anyone who has been involved knows the difference between the two.

It would really be a long time and this is something that you couldnt able to get it out within few months or even on a year later which means that developing these risk management skills wont be simply but also
not impossible for you to commit out so it would really vary.Risk management is crucial when it comes to investment because it do matter on how you do handle out decisions whether you do take profits
or would be basically buying out coins depending on the opportunity that you are seeing.

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Quote from: sana54210 on March 07, 2022, 02:22:25 PM

-snip-

A little or a lot it will still affect trading. Professional people already have a lot of experience and they know what to do when the market is not going well. they also have a lot of capital reserves so they can manage it well.
those who are professionals and have orders of hundreds of millions of dollars can be called Whales, they certainly have the power to manipulate the market and play with other people's psychology. We as small traders just need to follow them and don't go against the flow.

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Quote from: taufik123 on March 06, 2022, 11:46:55 PM

Pro traders do have some guidelines or rules that they should never break. But it's not easy to really stick to a written strategy if psychology can't be controlled. Even ProTrader still has psychological problems which will certainly have an impact on trading. and the important point is capital reserves and capital management. Trading will be calm and according to the rules if there is a capital reserve to buy at a dip price.
The use of stop loss and profit targets can be very helpful.

I do not think that professional traders have that much psychological problems as you may think. I mean of course they do, a bit, but that is very tiny and doesn't change it too much. I have seen people trading with hundreds of millions of dollars per day and they were not really that much worried about it, they do not consider it as big money but more like game money, it is just their job.

So, when it comes to making decisions, they do not feel like they should be doing anything different because of something changing or losing money or winning money or anything. They just look at it as numbers, like some high score in a game and try to beat their own previous high score and play very well.

Captain Corporate

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Quote from: Hamphser on March 07, 2022, 01:40:09 PM

Mastering those three does take a long time. If you are not good at it at first, or even after a year or two, do not be worried. People may see your message and think that you need have all three locked down before they could be a good trader, but that is not the case, you can still be a good trader without being masters on all of those. The only difference is, if you managed to master them, then you REALLY do become a great one, like unbelievable one. So they are very important, they are the decider between "this is my full-time job now" versus "I am making money from it", and anyone who has been involved knows the difference between the two.

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Quote from: taufik123 on March 07, 2022, 09:34:09 AM

Quote from: JooBra on March 07, 2022, 05:04:58 AM

I think strategy and tools develops with time like the market. You need to be on top of the game non stop to be in profit. And controlling emotions is a must to be succesfull.

Trading strategies and tools do develop over time and will be more helpful in trading. but it is also balanced with the understanding and knowledge of its users. It's useless to use the latest tools and strategies if you can't use them to their full potential. Trading will not always be profitable, there will be times to experience losses. Emotional regulation is a must, but there will be a threshold.

Emotional
Psychological
Intellectual
Intuition

These are things that you do need to handle even though these are just add ups aside from technical and fundamental but these
factors are really that much crucial for you on becoming a good trader.Risk management is a must so that you could really able to
sustain this unpredictable market.

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Quote from: JooBra on March 07, 2022, 05:04:58 AM

I think strategy and tools develops with time like the market. You need to be on top of the game non stop to be in profit. And controlling emotions is a must to be succesfull.

Trading strategies and tools do develop over time and will be more helpful in trading. but it is also balanced with the understanding and knowledge of its users. It's useless to use the latest tools and strategies if you can't use them to their full potential. Trading will not always be profitable, there will be times to experience losses. Emotional regulation is a must, but there will be a threshold.

sumant

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In crypto risk in trading is big thing to manage. As I understand emotional person can not control risk because emotions does full time job in our body, one trading going down or up millions of emotions going throughout. Control emotions. Next thing is not in hurry to buy anything means out of market is safe place. Third is play on big players like BTC, Eth, BSC etc to minimize risk. Forth is not put all money at one place you will always get loss. Trading is very simple in looking but very hard in doing specially cryptocurrencies.

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Quote from: taufik123 on March 06, 2022, 11:46:55 PM

Quote from: dimonstration on March 05, 2022, 06:28:17 AM

Things will be easy if you have a rule book as your guide on trading. Most of professional traders have this kind of tools so that they can stick to the plan no matter what will happened on the price. Pro traders don't trade with emotion but rather they will set everything such as stop loss and target take profit by the time they open an order. I don't see any pro traders that always watching by the time thy open position but rather they this before they open position to make sure there will be no problem.

Pro traders do have some guidelines or rules that they should never break. But it's not easy to really stick to a written strategy if psychology can't be controlled. Even TYrade pro still has psychological problems which will certainly have an impact on trading. and the important point is capital reserves and capital management. Trading will be calm and according to the rules if there is a capital reserve to buy at a dip price.
The use of stop loss and profit targets can be very helpful.

I think strategy and tools develops with time like the market. You need to be on top of the game non stop to be in profit. And controlling emotions is a must to be succesfull.

taufik123

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Quote from: dimonstration on March 05, 2022, 06:28:17 AM

Things will be easy if you have a rule book as your guide on trading. Most of professional traders have this kind of tools so that they can stick to the plan no matter what will happened on the price. Pro traders don't trade with emotion but rather they will set everything such as stop loss and target take profit by the time they open an order. I don't see any pro traders that always watching by the time thy open position but rather they this before they open position to make sure there will be no problem.

Pro traders do have some guidelines or rules that they should never break. But it's not easy to really stick to a written strategy if psychology can't be controlled. Even ProTrader still has psychological problems which will certainly have an impact on trading. and the important point is capital reserves and capital management. Trading will be calm and according to the rules if there is a capital reserve to buy at a dip price.
The use of stop loss and profit targets can be very helpful.

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Quote from: dimonstration on March 05, 2022, 06:28:17 AM

Things will be easy if you have a rule book as your guide on trading. Most of professional traders have this kind of tools so that they can stick to the plan no matter what will happened on the price. Pro traders don't trade with emotion but rather they will set everything such as stop loss and target take profit by the time they open an order. I don't see any pro traders that always watching by the time thy open position but rather they this before they open position to make sure there will be no problem.

In general, pro traders knows how to control their emotions and perform their plan according to what is written in their book. They are too consistent and that is why we could see that they will succeed. Thus, if we can do the proper management of our trades, I think we can minimize the risk and this is what I pictured out how these pro traders work in life. They buy coins at a cheaper price and they also sell them at a profitable price.

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Quote from: Ararbermas on February 20, 2022, 06:11:14 PM

Well this is it guys because today i would like to share this tool that can help us to have a proper risk management when it comes trading..

Its a free tool actually and it's called winrate.io

This tool can estimate our earnings and losses from trading by simulating trades based on winrate, fees, leverage etc.
This is a big help especially if your trading with leverage

Infact you can run your own strategy as well to see it if it's good or not.

See the image below..
60 wins 40 losess you still have an amazing winrate as long as you have a proper risk management..
snip

It seems like I have seen this tool on some other post as well but really never used it. Thanks for sharing as it will help many others.
Risk management is one of the most important concepts of effective trading. With proper risk management we can save ourselves from huge losses.
We can even say that the first thing we need to learn while trading is risk management.
I might start using this tool to see how effective it is.

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Quote from: Ararbermas on February 20, 2022, 06:11:14 PM

This tool can estimate our earnings and losses from trading by simulating trades based on winrate, fees, leverage etc.
This is a big help especially if your trading with leverage

Simulators are not new things to this crypto trading community and all the simulators are always known for evaluating the effectiveness of our trading strategy which includes risk management and accuracy of entry/exit signals. Back-testing is the simple method all the simulators are making use to evaluate our strategy and not sure about what kind of methodology is incorporated in this particular app.

Quote from: Ararbermas on February 20, 2022, 06:11:14 PM

Infact you can run your own strategy as well to see it if it's good or not.

These days advanced trading portals are providing back testing features after MT4 and MT5 trading portals are pioneer on this. Still, I always suggest to go for live market testing even I am not against back testing as today's market may not be similar to yesterday's.

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Quote from: taufik123 on March 05, 2022, 05:47:43 AM

Quote from: Mahanton on February 28, 2022, 03:45:00 PM

Having a strong mind
Having a good control of your emotion
Having a good discipline
Having a self-control on various situations

You would able to make yourself sustain on this market even though it wouldnt really be that simple but at least you should
consider out these factors and you would really need it.

Some of the factors you mention include psychological control or psychological management. this is about the mind, emotional control, discipline and control. It is not easy to be able to apply all these factors, there will be some mistakes that can be made. we can only anticipate it. Good risk management can be applied by paying attention to every step that will be taken when trading. also supported by good capital management so as not to cause problems that will have a bad effect on trading.

Things will be easy if you have a rule book as your guide on trading. Most of professional traders have this kind of tools so that they can stick to the plan no matter what will happened on the price. Pro traders don't trade with emotion but rather they will set everything such as stop loss and target take profit by the time they open an order. I don't see any pro traders that always watching by the time thy open position but rather they this before they open position to make sure there will be no problem.

taufik123

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Quote from: Mahanton on February 28, 2022, 03:45:00 PM

Having a strong mind
Having a good control of your emotion
Having a good discipline
Having a self-control on various situations

You would able to make yourself sustain on this market even though it wouldnt really be that simple but at least you should
consider out these factors and you would really need it.

Some of the factors you mention include psychological control or psychological management. this is about the mind, emotional control, discipline and control. It is not easy to be able to apply all these factors, there will be some mistakes that can be made. we can only anticipate it. Good risk management can be applied by paying attention to every step that will be taken when trading. also supported by good capital management so as not to cause problems that will have a bad effect on trading.

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Quote from: rhomelmabini on February 26, 2022, 10:37:07 AM

Quote from: Viscore on February 24, 2022, 10:37:25 PM

Most beginners forget the importance of risk management. They just hop in the market and making losses. They let their emotions lead, without knowing that they already have lose everything (money).Trading as a beginner without proper skills and guide can be very risky.Thats why it is important to make an adequate research. Get an expert and seek some advice before trading.Take your time and success will come. Happy trading

Most newbies are too excited to test both of their two feets on the water in trading, they don't know the risks as well as managing it. Without proper knowledge they will surely sank and it's a devastating especially if you're new and all your balance was burned.

Getting an expert especially a paid one isn't the best choice to have but you can always do your own research until you are educated enough to do the trading.

This is why the first thing that newbies need to learn when they come to this market is not how to make money but how to avoid losing it, and for that they need a good money management strategy, this is not really sexy which is why many people are not really interested in this, however I would venture to say that it is probably the most important skill you can have in any market, as someone without it has no chance to become successful, while someone that has only mastered money management strategies can still become profitable even if they do not know anything else about the markets.

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Quote from: JooBra on February 28, 2022, 03:39:07 PM

Quote from: crzy on February 27, 2022, 04:36:53 PM

Monitoring your activities is always a good one, and you should always know when to stop even if you still have the capital left. Thanks for sharing this tools to easily monitor your wins and losses, this can be a big help if you do this correctly. Though, you can’t fully depend on this better to setup everything before you start trading or even in gambling, and commit to that so you can avoid further losses.

Even with all this there is needed a lot of strong mind to stick to it. Just sticking to it can separate you from loser or winner.

Having a strong mind
Having a good control of your emotion
Having a good discipline
Having a self-control on various situations

You would able to make yourself sustain on this market even though it wouldnt really be that simple but at least you should
consider out these factors and you would really need it.

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