Risk management | Bitcointalksearch.org

TheUltraElite

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Quote from: Inspiron14 on July 08, 2023, 06:32:51 AM

True it is highly recommended to start trading with a small amount of money,

Any amount of money can be used to start trading. Just that your goal should be clear and limited to bitcoin mostly. Day trading less than long term and not going into HYIP/MLM/Signals groups should keep you the safest.

Go with any of the more risky options available and you will be increasing your risk. Depending on your risk appetite, you might get washed out too quickly, but as you gain experience you will able to develop your skills.

Quote

trading alone is so risky that a slight mistake in decision can cost you money,

I dont see the point of "alone" here. We all trade on our own, nobody should be guiding you unless they are a family member teaching you and has good intentions.

milewilda

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Quote from: Inspiron14 on July 08, 2023, 06:32:51 AM

Quote from: Fivestar4everMVP on July 02, 2023, 03:43:20 PM

Quote from: Kara3 on June 02, 2023, 03:22:47 AM

_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.

_ Reacting to risk, use stop loss and always take profit.

All that you have said above are correct, as they indeed correlate to risk management, and I think one of the most important of this rules is still the not to go into trading with an amount of money you can not afford to lose, I personally believe that this is the root cause of all other problems aside, or maybe most of it.

Anybody learning to trade should always start really small, that is, starting with a small amount of money, this is to minimize losing too much. Or more than expected.

True it is highly recommended to start trading with a small amount of money,
trading alone is so risky that a slight mistake in decision can cost you money,
so these risks must be considered and remain careful.

Always start small and dont really have that all in kind of behavior when it comes to investment because this is usually the case for most newbies out there in terms of duration on how they should really be learning things
which in fast pace which its not recommendable. Risk management is crucially needed on which it would really be helping you on handling yourself with this unpredictable space. You cant just put up money and would really be that just waiting for the price to increase. If you are planning for long term hold then it would really be that also considerable on which you would not really be making yourself get involved with the hassle things that those short or day traders would be doing. You cant really make yourself that having that all knowing behavior which cant be possible, experience would be your best teacher and something that
you should really be needing to learnt up along the way.

nelson4lov

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Quote from: sulendra12 on July 08, 2023, 02:55:01 PM

Stop loss is a mandatory thing to do if you don't want to drain your money fast because you don't know what to do when the chart is keep going down continuously. For beginner traders, they probably don't know when to start and just keep waiting until the price meet their criteria but in reality it's really difficult to happen. I'd prefer to use the losses as my part of experience so I can learn and avoid to make the same mistake again.

You made a good point but I won't say stop loss is mandatory for any trader. I have seen some really good traders that doesn't use it (I use stop loss btw). So, I'd say it depends ultimately on the trader. Everyone would have their own trading styles and strategies so nothing is mandatory. Although, I do agree that for beginners, it's recommended for them to have stop loss in place while they figure out what works best of them.

Quote from: Peanutswar on June 27, 2023, 11:48:50 AM

Learn the basic fundamentals of trading and analysis if you are now confident with that, make a risk with the margin trades.

Trading is a skill to be learnt and mastered. Until one has known most if not all the basics, it's not ideal to take on additional risks in form of leverage or margin so I agree with you. Most people often skip the learning part and just want to earn. When we stop thinking of crypto and trading as get rich schemes, the better it'd be for us.

sulendra12

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Quote from: Kara3 on June 02, 2023, 03:22:47 AM

_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

Just make sure to not to be overconfident especially with the low risk stuff because you can easily losses your money if there is something unexpected occur during your trade. Keep your eyes open on everything.

Quote from: Kara3 on June 02, 2023, 03:22:47 AM

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.
_ Reacting to risk, use stop loss and always take profit.

Stop loss is a mandatory thing to do if you don't want to drain your money fast because you don't know what to do when the chart is keep going down continuously. For beginner traders, they probably don't know when to start and just keep waiting until the price meet their criteria but in reality it's really difficult to happen. I'd prefer to use the losses as my part of experience so I can learn and avoid to make the same mistake again.

Inspiron14

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Quote from: Fivestar4everMVP on July 02, 2023, 03:43:20 PM

Quote from: Kara3 on June 02, 2023, 03:22:47 AM

_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.

_ Reacting to risk, use stop loss and always take profit.

All that you have said above are correct, as they indeed correlate to risk management, and I think one of the most important of this rules is still the not to go into trading with an amount of money you can not afford to lose, I personally believe that this is the root cause of all other problems aside, or maybe most of it.

Anybody learning to trade should always start really small, that is, starting with a small amount of money, this is to minimize losing too much. Or more than expected.

True it is highly recommended to start trading with a small amount of money,
trading alone is so risky that a slight mistake in decision can cost you money,
so these risks must be considered and remain careful.

Yawa2020

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Quote from: Kara3 on June 02, 2023, 03:22:47 AM

When trading there are rules to observe in other to protect your margin, it's more like if you can't make more money, don't lose the one you have,
That's where risk management comes in handy.
The strategies are;

_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.

_ Reacting to risk, use stop loss and always take profit.

If you dare to win, you must take risk. The higher risk you take, the more you are likely to make it quickly and succeed but the risk should be calculated. If you fail in your first and second risk, you'll learn to control your risk in the third attempt and it might heed positive result.

Using stop loss is highly recommend but take profit is a no for me. As far as you're not losing, you should exit the trade when you are satisfied rather than setting take profit that you will later regret.

ItsCrafty

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Quote from: Fivestar4everMVP on July 02, 2023, 03:43:20 PM

_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.

_ Reacting to risk, use stop loss and always take profit.

In my opinion, market, security, and regulatory concerns are all addressed as part of risk management in the bitcoin Trading. On the other hand also price fluctuation, liquidity, and theft of digital assets are some significant risk concerns. Automated trading bots, risk assessment tools, and cryptocurrency wallets are examples of tools and technology for risk management. Implementing diversification, establishing risk tolerance, and utilizing technological tools to safeguard your digital assets are all best practices for risk management in the crypto trading.

Gladitorcomeback

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Quote from: Fuso.hp on June 08, 2023, 02:17:53 AM

Yes I also think we don't need to risk much money in the first place. We should take less risk than we can afford. Because the risk of excess money can bring bad things for you. And those of us who think that we can make profit only by trading, thinking about the amount of money we have and managing some more money, should be careful because trading will never guarantee you profit.

First advantage of using less amount is that you have the opportunity to learn and when you put bigger and whole amount at first stage and you also have don't realize the facts about crypto then you will loss all amount in a single try therefore there will be nothing with you to continue your way towards success.

Less amount has less risk and less profit and bigger amount has bigger profit and bigger risk so we have to keep eye on both because if we ignore one of them then it will not be possible for us to take advantage out of it.

First start with little and get knowledge by using such lower amount and once you have actual learning about the basic materials then you can increase invested amount. Success comes little by little and if we think that we will earn millions or trillion in no time then we cannot get it but if we use our mind then surely we can get millions.

Fivestar4everMVP

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Quote from: Kara3 on June 02, 2023, 03:22:47 AM

_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.

_ Reacting to risk, use stop loss and always take profit.

All that you have said above are correct, as they indeed correlate to risk management, and I think one of the most important of this rules is still the not to go into trading with an amount of money you can not afford to lose, I personally believe that this is the root cause of all other problems aside, or maybe most of it.

Anybody learning to trade should always start really small, that is, starting with a small amount of money, this is to minimize losing too much. Or more than expected.

EarnOnVictor

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Quote from: Kasabus on June 26, 2023, 04:59:11 PM

Quote from: tygeade on June 26, 2023, 12:12:49 AM

Quote from: Kara3 on June 02, 2023, 03:22:47 AM

When trading there are rules to observe in other to protect your margin, it's more like if you can't make more money, don't lose the one you have,
That's where risk management comes in handy.
The strategies are;

_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.

_ Reacting to risk, use stop loss and always take profit.

I think managing the risk part is not something newbies look at closely, and they totally should. They take more risk than a veteran and that's a terrible thing because they should be doing a lot better in that regard, if they are taking more risk without as much experience then it will be a loss in the end. Obviously they do not take it seriously and since they are newbies they think they are not taking too much risk when in fact they are taking it.

This is why it is quite important to be careful. I personally take as little risk as possible in the crypto world even though I have been here for over 10 years now. Because, it is hard to make money here, but it is very easy to lose it so I better be careful. I suggest the same mindset to all the newbies who think they are taking very little risk, you can take even less.

Newbies are actually the most needed persons to execute risk management as they are more prone to losses the moment they start entering the market without prior knowledge and experiences.

Both newbies and experienced traders need good risk management practices, the two categories wouldn't want to lose their money irrespective of how trusting their trading strategy is or how long they've been trading. Only that newbie might want to use stricter risk management because they are just starting and they need to limit their risks to the barest minimum for the safety of their trading account.

This could be achieved by either trading with a very low risk or by using a tight stop loss as their strategy permits, or the combination of the two.

SaveOurSea

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Quote from: Cling18 on June 30, 2023, 05:45:26 PM

Quote from: molsewid on June 30, 2023, 05:19:04 PM

Quote from: jostorres on June 30, 2023, 03:44:51 AM

Quote from: CarnagexD on June 26, 2023, 08:49:41 AM

We all know this as a trader. But how well can you follow your well-written risk management plan determines your result. It doesn't matter how much you know managing funds, it all lies down on how are you able to follow it. Not only that we have money or fund. We also have mental capital which we also preserve. If we lose this, we can't expect ourselves to perform well in front of the charts. It's not only the monetary value, but the psychological value of the risk involved.

Even if one doesn't have enough experience in the market, trading, and risk-management techniques, one can learn about how they can manage their trades along with risk-management techniques so that they can avoid facing excessive losses, because risk-management might not be able to completely save you from losses but it will minimize your losses just like how stop-loss works in not letting your trade going too deep in loss and sells the asset immediately.

So one should obviously practice risk-management techniques before they enter the market so that if a trade they made didn't go the way they expected it to go, the techniques applied save them from facing excessive losses or getting their capital or a part of it stuck in a single trade.

They should always have a back up plan for everything , every time I am doing something I have a plan B and C not because I am expecting that my plans will fail but I want to lessen the risk that I will be encountering once it is failed. Crypto is very volatile so it is not very easy not to have risk management , they should know at least how to use TP and SL.

Applying at least the basics will help even if you're just a beginner. You can't actually do trading perfectly in the beginning and there will surely be challenges that the market brings and your experiences on dealing with these problems will help you adjust and be better as you go on with your trading journey.
It's a long process of learning and you have to be sure that you have the complete willingness to learn because even it teading professionals undergo a continuous learning process.
The trading challenge that we will all be facing is the volatility of the market. We should focus how we could take emadvantage of every market situation.

No one trader who trades perfectly is impossible so the most important thing is to keep doing your best by continuing to learn,
indeed the more experience then it will make us even better,
besides that it must also be realized that in trading we will not always be profitable because losses are also part of trading.

Hamphser

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Quote from: Cling18 on June 30, 2023, 05:45:26 PM

Quote from: molsewid on June 30, 2023, 05:19:04 PM

Quote from: jostorres on June 30, 2023, 03:44:51 AM

Quote from: CarnagexD on June 26, 2023, 08:49:41 AM

We all know this as a trader. But how well can you follow your well-written risk management plan determines your result. It doesn't matter how much you know managing funds, it all lies down on how are you able to follow it. Not only that we have money or fund. We also have mental capital which we also preserve. If we lose this, we can't expect ourselves to perform well in front of the charts. It's not only the monetary value, but the psychological value of the risk involved.

Even if one doesn't have enough experience in the market, trading, and risk-management techniques, one can learn about how they can manage their trades along with risk-management techniques so that they can avoid facing excessive losses, because risk-management might not be able to completely save you from losses but it will minimize your losses just like how stop-loss works in not letting your trade going too deep in loss and sells the asset immediately.

So one should obviously practice risk-management techniques before they enter the market so that if a trade they made didn't go the way they expected it to go, the techniques applied save them from facing excessive losses or getting their capital or a part of it stuck in a single trade.

They should always have a back up plan for everything , every time I am doing something I have a plan B and C not because I am expecting that my plans will fail but I want to lessen the risk that I will be encountering once it is failed. Crypto is very volatile so it is not very easy not to have risk management , they should know at least how to use TP and SL.

Applying at least the basics will help even if you're just a beginner. You can't actually do trading perfectly in the beginning and there will surely be challenges that the market brings and your experiences on dealing with these problems will help you adjust and be better as you go on with your trading journey.
It's a long process of learning and you have to be sure that you have the complete willingness to learn because even it teading professionals undergo a continuous learning process.
The trading challenge that we will all be facing is the volatility of the market. We should focus how we could take emadvantage of every market situation.

Would really be just that common sense that you should really be that needing to know on what would be the basics even if you do call yourself a complete newbie then it is really just that right that you should really be mindful about knowing those things before you would really be deciding on putting up some funds here on this space because having no risk management would really be resulting
into a disaster with your finances and this is why it would really be just that right that you should really know at least with the basics.

You cant really just pour up your money and just let it work because it wont really be making out those results or outcomes if you wont really be doing something with it.
This is why its really that important that you would be needing to take actions or what are the primary things which are really needed on handling up this space.

Cling18

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Quote from: molsewid on June 30, 2023, 05:19:04 PM

Quote from: jostorres on June 30, 2023, 03:44:51 AM

Quote from: CarnagexD on June 26, 2023, 08:49:41 AM

We all know this as a trader. But how well can you follow your well-written risk management plan determines your result. It doesn't matter how much you know managing funds, it all lies down on how are you able to follow it. Not only that we have money or fund. We also have mental capital which we also preserve. If we lose this, we can't expect ourselves to perform well in front of the charts. It's not only the monetary value, but the psychological value of the risk involved.

Even if one doesn't have enough experience in the market, trading, and risk-management techniques, one can learn about how they can manage their trades along with risk-management techniques so that they can avoid facing excessive losses, because risk-management might not be able to completely save you from losses but it will minimize your losses just like how stop-loss works in not letting your trade going too deep in loss and sells the asset immediately.

So one should obviously practice risk-management techniques before they enter the market so that if a trade they made didn't go the way they expected it to go, the techniques applied save them from facing excessive losses or getting their capital or a part of it stuck in a single trade.

They should always have a back up plan for everything , every time I am doing something I have a plan B and C not because I am expecting that my plans will fail but I want to lessen the risk that I will be encountering once it is failed. Crypto is very volatile so it is not very easy not to have risk management , they should know at least how to use TP and SL.

Applying at least the basics will help even if you're just a beginner. You can't actually do trading perfectly in the beginning and there will surely be challenges that the market brings and your experiences on dealing with these problems will help you adjust and be better as you go on with your trading journey.
It's a long process of learning and you have to be sure that you have the complete willingness to learn because even it teading professionals undergo a continuous learning process.
The trading challenge that we will all be facing is the volatility of the market. We should focus how we could take emadvantage of every market situation.

molsewid

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Quote from: jostorres on June 30, 2023, 03:44:51 AM

Quote from: CarnagexD on June 26, 2023, 08:49:41 AM

We all know this as a trader. But how well can you follow your well-written risk management plan determines your result. It doesn't matter how much you know managing funds, it all lies down on how are you able to follow it. Not only that we have money or fund. We also have mental capital which we also preserve. If we lose this, we can't expect ourselves to perform well in front of the charts. It's not only the monetary value, but the psychological value of the risk involved.

Even if one doesn't have enough experience in the market, trading, and risk-management techniques, one can learn about how they can manage their trades along with risk-management techniques so that they can avoid facing excessive losses, because risk-management might not be able to completely save you from losses but it will minimize your losses just like how stop-loss works in not letting your trade going too deep in loss and sells the asset immediately.

So one should obviously practice risk-management techniques before they enter the market so that if a trade they made didn't go the way they expected it to go, the techniques applied save them from facing excessive losses or getting their capital or a part of it stuck in a single trade.

They should always have a back up plan for everything , every time I am doing something I have a plan B and C not because I am expecting that my plans will fail but I want to lessen the risk that I will be encountering once it is failed. Crypto is very volatile so it is not very easy not to have risk management , they should know at least how to use TP and SL.

jostorres

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Quote from: CarnagexD on June 26, 2023, 08:49:41 AM

We all know this as a trader. But how well can you follow your well-written risk management plan determines your result. It doesn't matter how much you know managing funds, it all lies down on how are you able to follow it. Not only that we have money or fund. We also have mental capital which we also preserve. If we lose this, we can't expect ourselves to perform well in front of the charts. It's not only the monetary value, but the psychological value of the risk involved.

Even if one doesn't have enough experience in the market, trading, and risk-management techniques, one can learn about how they can manage their trades along with risk-management techniques so that they can avoid facing excessive losses, because risk-management might not be able to completely save you from losses but it will minimize your losses just like how stop-loss works in not letting your trade going too deep in loss and sells the asset immediately.

So one should obviously practice risk-management techniques before they enter the market so that if a trade they made didn't go the way they expected it to go, the techniques applied save them from facing excessive losses or getting their capital or a part of it stuck in a single trade.

Jocuserious

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You want trade quickly? Ok can you accepted loss money from your trade? If yes then you can do us faster otherwise you should avoid this items. I never call anyone for quickly trade but i can suggest there for management crypto profits. I am only here of share my opinion not working for recovery your loss money.

tygeade

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Quote from: irhact on June 26, 2023, 02:45:39 PM

If you're an active trader and does trade while actively looking at the monitor of your laptop then you don't need stop loss. You're active so you can exit the market if you don't feel comfortable with the price movement. Stop loss has its disadvantages. It not all positive because cryptocurency whales manipulate the market by causing a false buy signal or sell signal on the market. If your stop loss is at the price that whales false sell just to trigger the market to start dumping, you'll get affected meanwhile the price isn't dumping but increasing.

For any trader that's not active then making use of stop loss is very important, it doesn't matter if you're trading a less volatile market like Bitcoin, you still need the stop loses to prevent yourself from suffering huge losses. Bitcoin also has moment when the price falls very fast.

Even those people need it because most of those people do short term stuff, so short term that they might be looking at another coin while the coin they bought could drop. I mean like literally 150x leverage people, I have seen a few of them with like multiple screens and they were dealing with a lot of big risk moves as well so they do need a lot of care with their stop loss and trades.

If they don't use it, they may end up losing all their money even on a single toilet break, we are talking about that much risk. Obviously that also means that they may end up making that much profit as well, and it should be very important as well. This isn't really a situation to overcome it just means you need to be a lot more careful.

Fatunad

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Quote from: ItsCrafty on June 27, 2023, 03:01:35 PM

Quote from: Franctoshi on June 27, 2023, 01:18:40 PM

Risk management is necessary not for newbies only but also for those experienced traders, But the issue here with newbie traders is that most of them are reluctant to learn the basic tools meant to help traders, especially inexperienced ones, to limit losses, they are only focused on the profit side while leaving their account unprotected, which is why you see some of them come asking how to put stop losses and limit orders after they must have gotten raked by the market, they now start running to learn those stuff at last which were meant to be the first thing they should have done.

I believe that risk management in bitcoin trading involves putting techniques in place to prevent losses and save your capital. To reduce the effects of the volatility of any one asset, many traders diversify their holdings by making investments in a variety of cryptocurrencies. By automatically selling an item when it hits the designated price or level, using can help to reduce losses. It also depends on how well your technical plan is put into practice. Using the right risk assessment techniques will ensure that no trade carries an excessive amount of risk. Additionally, by monitoring market trends, news, and technical indications, you can lessen some potential risks. Trading cryptocurrencies effectively involves a systematic approach, extensive study, and constant supervision.

The main point on why we are really that thriving to study technicals and other streategies is that we are really that trying to minimize that risks as much as possible. We know its hard but its not something that we cant
able to make profits if it had done it right. Risk management is composed or everything on where you would really be speaking about financial management and emotion management or something that we could really
call it on general aspects which is mainly been needing for you to handle yourself with this unpredictable market.You cant really just put up some positions without having considerations or having those kind of analysis because it would really be called as a pure gambling if you have done it this way. We know that its hard but its not something that you cant do if you are really that serious on dealing with this unpredictable space.
If you do miss out on having this kind of management then expect that there there would really be lots of losses that you would experience along the way.

ItsCrafty

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Quote from: Franctoshi on June 27, 2023, 01:18:40 PM

Risk management is necessary not for newbies only but also for those experienced traders, But the issue here with newbie traders is that most of them are reluctant to learn the basic tools meant to help traders, especially inexperienced ones, to limit losses, they are only focused on the profit side while leaving their account unprotected, which is why you see some of them come asking how to put stop losses and limit orders after they must have gotten raked by the market, they now start running to learn those stuff at last which were meant to be the first thing they should have done.

I believe that risk management in bitcoin trading involves putting techniques in place to prevent losses and save your capital. To reduce the effects of the volatility of any one asset, many traders diversify their holdings by making investments in a variety of cryptocurrencies. By automatically selling an item when it hits the designated price or level, using can help to reduce losses. It also depends on how well your technical plan is put into practice. Using the right risk assessment techniques will ensure that no trade carries an excessive amount of risk. Additionally, by monitoring market trends, news, and technical indications, you can lessen some potential risks. Trading cryptocurrencies effectively involves a systematic approach, extensive study, and constant supervision.

Franctoshi

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Quote from: Kasabus on June 26, 2023, 04:59:11 PM

Newbies are actually the most needed persons to execute risk management as they are more prone to losses the moment they start entering the market without prior knowledge and experiences. The fact that it’s hard to make money and be profitable in your investment, then newbies should be more aware about that so that they will learn to be extra careful when doing such risks. And while risks are inevitable when trading or investing, but those newbies who prefer to study the market first and gain sufficient learning are actually lessening the risk that they have to undergo.

Risk management is necessary not for newbies only but also for those experienced traders, But the issue here with newbie traders is that most of them are reluctant to learn the basic tools meant to help traders, especially inexperienced ones, to limit losses, they are only focused on the profit side while leaving their account unprotected, which is why you see some of them come asking how to put stop losses and limit orders after they must have gotten raked by the market, they now start running to learn those stuff at last which were meant to be the first thing they should have done.

Topic: Risk management (Read 912 times)