Topic: Risk Management - page 3. (Read 2089 times)
Risk management, I would say is the key feature that every trader has to think about before starting his activities. it should be included in every trading system and carefully calculated before every single trade.
I think this risk will still exist and you must be able to face the risks that exist to be able to get a lot of profit, do not be afraid to face risks, to be able to control the risk at least you already have trading skills.
If I am thinking of entering a trade, I will do my best to minimize risk,
for example I wouldn't enter a trade if it doesn't show strong bullish pattern,
or something like that.
for example I wouldn't enter a trade if it doesn't show strong bullish pattern,
or something like that.
Most of the best hedge fund managers lose 80% of their trades, but they are mitigating risk properly so they are not losing a lot of money just more trades, while the 20% they win make the entire year of their profits.
In the crypto-currency market, risks are associated not only with the loss of the cost associated with the collapse, but also with fraud and theft, in order to avoid the latter it is worthwhile to apply a number of actions that will at least partially preserve the asset 
Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?
First you need to have tight stop losses to avoid the huge loss that wipes you out. Second I would suggest diversifying your holdings into different sectors and different market caps. This may cushion you in case of market troubles. These 2 when combined can be very effective.
Problems in tight losses is that its an easy hit of fluctuations
Exchanges knows about it, they will basically hit those losses before going reversals
what would be the safest is to have a little to no leverages on margins, thus if you have an already open order, you don't have to worry and just wait
Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?
First you need to have tight stop losses to avoid the huge loss that wipes you out. Second I would suggest diversifying your holdings into different sectors and different market caps. This may cushion you in case of market troubles. These 2 when combined can be very effective.
Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?
First of all, you have to know and understand what you want to risk... Understanding it requires researching and getting as much information as you can about it.When you are investing, invest with the amount you can afford to loose, don't put in something you will cry for rather something opposite so you don't suffer emotionally and financially if you loose.
Their are various ways to manage risks. You should use a small percentage of your funds to take risks and to manage your money very well. You need to manage your risks very well
Risks in crypto-currency investments cannot be ignored or eliminated, it should however be managed to levels which will not be detrimental to your portfolio, a good way to do this is in investing in research of projects and diversification
Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?
Eliminating risk? Stay in fiat and accept inflation eating away on your savings. Minimizing risk? Know yourself and don't do anything stupid.
This means:
1) Understand what you're buying.
2) Don't invest into something only because it has risen.
3) Don't exit a market only because it has declined.
4) Understand what you're buying.
5) Invest only as much as you can afford to lose.
6) Prepare enter and exit strategies way in advance.
Number 1) helps preventing you from doing stupid things. If you don't understand what you're buying, you're just gambling. If you understand what you're buying, but know it's shit... you shouldn't be buying it in the first place. If you understand what you're buying and are convinced of its merits... number 2) and 3) will be less likely to affect you. Number 5) helps alleviate your psychological burden which makes it easier to not do stupid things. Such as 2) or 3) for example. Same goes for 6).
Note that hedging only helps if your hedge actually acts as one when shit hits the fan. Historical analysis may help the process, but could still fall short.
Note that diversification only works if what you are buying is worth investing in. A diversified bucket of shit, is still a bucket of shit.
Thanks for sharing.
Different people have different risk management. But there is a common relation and adjustment about some basic risk. Here are some. While trading never try for overtrade. Overtrade mean if you see that your opened trade go on wrong direction and you have hope for the trend can be go right or you can reduce lose if you make another trade in the same time and in the same pair. Always try for make trade with maximum 2% from your total deposited amount. No target, no greedy and no trade against trend.
One managing the risk of loss is not to place all coins in one basket. You can share the money you have to buy bitcoin and some altcoins. One coin and the other will support if one loses.
I think to be able to control the risk that you are better off using your trading capital partially and trading only for short or daily periods, don't let you look for more profit because it will wait too long and eventually make you trapped at a very expensive.
Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?
My best practice is to never buy a coin that has already reach 10x it's ICO price or its starting price the first time it got listed on exchanges. We cannot predict if it goes up and down but we can make sure that we are taking less risks and the people who bought btc last December are my main examples of that mistake.
When we put money in to crypto we should know the risk, the level risk for crypto is higher than others asset because the volatility also higher. And to manage the risk we should have skill and knowledge when best times to invest in crypto and how long to invest on it and what the target profit. After target profit reached we should has diversify risk by move the profit to the others asset that has lower risk.
the risk in trading that often happens is because of the fault of the trader himself, sometimes they forget the target they are achieving, and always want to take more profit.
how to manage it is to set a target when going in and out of trading.
how to manage it is to set a target when going in and out of trading.
Never invest on the amount that we cannot afford to loss. The only risky thing in crypto is when we invest all we have , we maybe end up losing or winning here and nobody knows what will be the next big thing or trend in crypto feild but one thing for sure we don't have any assurance here everything may change without a prior notice and everything is just a prediction nobody knows what will happen in crypto in the next few days or month so let's take good care and be more practical on it.
Each time they see a coin that is increasing then they'll just leap in and purchase immediately because it's miles hype and then after they were dumped on, they might whine because they lose lots and that they don't have any preference but to hold the coin or promote at a loss. The biggest mistake is they cross all in in a single change because they desired to have bigger profit however extra of often than not, the alternative occur and they have larger losses.
Risks are inherent or always there whenever we talked about investment especially Bitcoin and the whole cryptocurrency community. But how do you deal with these risks? What are your experiences or even techniques in managing risks? In minimizing risks or even eliminating it?
Without the control of its risks, it is very difficult to become a successful trader in the crypto currency and in General everywhere. When it comes to trading cryptocurrencies, the importance of this increases even more, as this market is very volatile and full of surprises. Controlling your risks by more than 60% guarantees you success.
No one has certain rules and requirements, they simply do not exist, because each scenario requires an individual approach. Each trader develops it in accordance with their views on the market, trading plan, mood and goals and emotions.
One of the main things that can destroy all the profits of the trader is greed. When you see that the price rises higher and higher, it is best to close this position, but here it comes - Greed! Everywhere the forecasts for further growth, profit and exultation, but here lies the main catch! It should be clearly understood that the stop is sure to be. Be sure to come correction or collapse and then you will regret that you have not sold your position on time. So it happens in 95% of the case I guarantee it! Therefore, if you are a trader, not a long-term investor, you need to gradually fix the profit without waiting for the collapse. The exact moment depends on the fuel supply of the coin and your ambitions.
Always take profit in small parts, one thing is for sure: sell should be on the way to the top and not on the way back down the slope. Do not try to sell the entire position at the top - you are unlikely to succeed. If you are not able to watch the rally in real time, place sell orders in advance.
Don't forget about diversification.
Another key aspect of risk management is the diversification and size of the portfolio, never invest all your money in one asset, no matter how awesome it may seem, no matter what promises its development team makes, and no matter what the excitement around it flares up. This may be a deliberate trap and you will fall for it. Never go all-in!
In a secure portfolio, capital should be distributed between at least ten different coins, preferably more.
Another important rule: one coin should not account for more than 10% of your portfolio. In exceptional cases, if the coin grows at an incredible rate - up to 20%. If the price rises higher and higher, it is sure to end sometime. Therefore, it is advisable to sell such a position on the way to the top and switch to looking for another coin with the best risk/profit ratio.
Be careful and trade with your head, I hope all of us will succeed!!
Jump to: