Topic: Risk management - page 4. (Read 930 times)
People often think about profit but the actual thing is to identify the risk and work to decrease it. This is true that if a person realize that getting profit is hard for him then stop putting money will be better because desire for making more money and recover your losses money will become a cause of your bad addict. I think just 10 percent of your money will be enough to start trading or investment and don't increase the amount after success because success is not easy always so get the benefit and utlize some portion for future success.
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.
There are pros and cons to stop loss in scripto trading. For example, when you trade a coin at a certain price, you can place a stop loss at a certain price to avoid the risk of losing your entire money. When it falls too much and when the market reaches your fixed price, your trade will automatically be canceled. The problem here is that the money you lose is not recoverable, but if you don't use stop loss, even if the coin's price drops too much. There is a possibility of profit again. 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.
Risk management in investing is very important because it involves identifying, analyzing and managing the risks associated with investment decisions. The main objective of risk management is to protect capital, minimize losses, and increase the chances of long-term investment success.
In the investment context, risk refers to the possibility of loss or an unwanted change in the value of an investment. Every investment has inherent risks related to factors such as market fluctuations, economic changes, government regulations or unforeseen events. By understanding and managing these risks, investors can reduce their negative impact and increase the chances of investment success.
In the investment context, risk refers to the possibility of loss or an unwanted change in the value of an investment. Every investment has inherent risks related to factors such as market fluctuations, economic changes, government regulations or unforeseen events. By understanding and managing these risks, investors can reduce their negative impact and increase the chances of investment success.
very important thing, especially when we already have wealth. if it is to maintain assets even survive in a negative market. risk and asset management is needed to minimize losses received when investing. this is not easy, we have to be really thorough, and it's usually easier to understand directly learning from experience than having to take courses. khurus has too many theories, while we need one theory but it's really applied right away because that's why we learn from experience.
I was thinking about this saying "Huge risk = huge rewards" but it was too opposite from what we want instead, we are looking for Less Risk but huge rewards. That is why only a few people succeed in trading as they can't accept the challenge and manage to handle stress. As we can see, many traders quit and become holders, but that was a good escape rather than leaving crypto forever.
Risk is not eliminated in trading but it is reduced when we use proper risk management. Agreed that some people have left trading to hodling and that is basically because of the trading mentality of profiting 100% without thinking of losing so they losing but having in mind that it is less risk and huge profit. Market trading can not be without risk and losses and it is better setting your loss limit. One important factor of stop loss is it stops you from losing all your capital.
We can't eliminate risk in trading, that was the reality. If we plan to go trading, make sure that we are preferred to face huge risks. I was thinking about this saying "Huge risk = huge rewards" but it was too opposite from what we want instead, we are looking for Less Risk but huge rewards. That is why only a few people succeed in trading as they can't accept the challenge and manage to handle stress. As we can see, many traders quit and become holders, but that was a good escape rather than leaving crypto forever.
Because there are significantly more successful people among holders than among traders. I am fascinated by the stories of successful traders, but they all went through a difficult path, when they had to lose a lot of money, it's too much stress.The hold eliminates this, just as the hold can forgive a lot of mistakes for which trading will take everything away. Until now, even those holders who could make a mistake with the entry point have been able to profit in the new bull market, and I suspect that this will also be the case in the upcoming bull market. But if you determine the entry point well, then the profit will be significantly better.
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.
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.
Use stop-loss as your major determinator of risk and take profit as your determinator of possible reward. If there is any case that you can take profit partially, do so. That will make you at least in ease because you realize a part of the profit. Then you put your stop loss to break even (depending on your type of trading).
Just remember that if you are a beginner trader, your number one focus must be to protect your capital by way of proper risk management and gaining a lot of experience trading. Preferably that experience would be for a year. Over that experience, you will encounter losses and moments of drawdown and that risk management is your shield to protect your equity.
Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.
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.
Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.
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.When you are taking a risk, you always need to consider what could go wrong and that's the most important part, some people take risks and they do fine, some people take risks and they do terribly and I feel like that's the risk management we are talking about. Manage your risks to a level where it is not that terrible, if you are doing fine then you should be doing fine but if you are not doing fine then it will not be an easy thing at all.
First we should make sure that we don’t make any losses.
No matter how skilled you are at trading, I think it is difficult. Unless you don't trade.
If at the beginning we think about profits, then there is huge possibilities that we end up making losses. If instead of this, we try to focus on how to not get loss, then definitely this will slowly turn this into profits. And as we know, the less risk we take, the less profits also we get. So accordingly manage the risk according to our needs. Always trade the amount that you can afford to lose.
I somewhat disagree with the points above. You must have profit target which is then set as a take profit. This must be planned from the start because you must have a plan for when to exit a trade and take profits. I agree profit is not as easy as it seems, but expecting profit from trading is fair. I trade for profit, so I think about how I do it to make a profit.
Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.
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 we should make sure that we don’t make any losses. If at the beginning we think about profits, then there is huge possibilities that we end up making losses. If instead of this, we try to focus on how to not get loss, then definitely this will slowly turn this into profits. And as we know, the less risk we take, the less profits also we get. So accordingly manage the risk according to our needs. Always trade the amount that you can afford to lose.
You may have the best profitable strategy and if you neglect your risk management, You definitely gonna end up getting screwed. Risk management is a very important aspect of our trading journey that we should take very serious before considering taking any trade, because managing of risks will keep you continue going in the trading business. From my personal experience some of the times I have tried doing more than I should do , basically not taking care of my risks, only me knew the price I paid for it.
Never you think that you can outsmart the market.
Such a true word, that is definitely the case without a doubt and that must be how it is most of the time. I believe that people are acting as if they are going to make something that matters but the reality is that strategy is only half of the topic. If you are not careful and if you are missing even one small thing, then you are going to take a lot more risk then you should.Never you think that you can outsmart the market.
This is why it's important to just focus on what you can do with what you have and not what you do not have. I know that people are focusing a lot more on making profit side, but they should start looking into not making a loss side as well. When you focus too much on the profit, you will not know what to do when the loss occurs and that will bankrupt all of your portfolio, always be ready for anything.
You're just giving a common advice, everyone already know it.
You should explain about the spot trading, future trading, and margin trading, then compare to each other and how to mitigate risk of each of them.
Don't forget about how much the stop loss someone need to place, does it's -5% of the price you bought? -10%, -20% etc.
People who're not a trader already learn about only use what you can afford to lose.
Losing is normal thing in the market, no onne will criticize you for losing, because even the pro traders records loss on their accounts. Diversify into trading categories, spot trades which is more simpler than future trade, but future consider the oil well of generating profits in crypto. I will also push into talking about ways to avoid losses, which leads us directly to risk management, it teaches us everything concerning the basic necessities we need to implement inother to reduces our losses. It have kept me going for years in the space, and I don't regret any bit of understanding my risk management, adapting to it and practicing it.You should explain about the spot trading, future trading, and margin trading, then compare to each other and how to mitigate risk of each of them.
Don't forget about how much the stop loss someone need to place, does it's -5% of the price you bought? -10%, -20% etc.
People who're not a trader already learn about only use what you can afford to lose.
on how to handle up those losses and would be minding about applying plan B's, which is something that you would really be needing to apply for you to have that possible recovery in case you have
lost up a certain trade. Risks management and other actions made would really be entirely be depending on someone because not all would really be that good when it comes to this kind of handling
on which if you arent really that good then you would really be that susceptible into blown out trading account.
You would really be needing that risks management because if you dont then you would definitely really be having that problem when it comes to profitability on which you cant be able
to control out your losses and might be ending up on having that gambler like mind and actions been made on.
You may have the best profitable strategy and if you neglect your risk management, You definitely gonna end up getting screwed. Risk management is a very important aspect of our trading journey that we should take very serious before considering taking any trade, because managing of risks will keep you continue going in the trading business. From my personal experience some of the times I have tried doing more than I should do , basically not taking care of my risks, only me knew the price I paid for it.
Never you think that you can outsmart the market.
Never you think that you can outsmart the market.
Focus on the risk not rewards.
Both go together. We can't divorce one from the other. Let me digress a little here and throw in knowledge of picking entries in Forex trading in relation to RR – Risk and Reward. Part of managing risk is to compare the RR ratio before triggering any trades. To get a near perfect entry, it's ideal that the reward be higher than the risk. Otherwise, the trade should be skipped. For instance, one makes it a Risk 25 pips in SL to Reward 40–50 (or more) pips in TP. For me, even in cryptos, I focus more on the reward. Something should entice me going into a trade, and certainly that thing isn't "Risk" but reward/profit. 
Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.
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. 
You're just giving a common advice, everyone already know it.
You should explain about the spot trading, future trading, and margin trading, then compare to each other and how to mitigate risk of each of them.
Don't forget about how much the stop loss someone need to place, does it's -5% of the price you bought? -10%, -20% etc.
People who're not a trader already learn about only use what you can afford to lose.
Losing is normal thing in the market, no onne will criticize you for losing, because even the pro traders records loss on their accounts. Diversify into trading categories, spot trades which is more simpler than future trade, but future consider the oil well of generating profits in crypto. I will also push into talking about ways to avoid losses, which leads us directly to risk management, it teaches us everything concerning the basic necessities we need to implement inother to reduces our losses. It have kept me going for years in the space, and I don't regret any bit of understanding my risk management, adapting to it and practicing it. You should explain about the spot trading, future trading, and margin trading, then compare to each other and how to mitigate risk of each of them.
Don't forget about how much the stop loss someone need to place, does it's -5% of the price you bought? -10%, -20% etc.
People who're not a trader already learn about only use what you can afford to lose.
with refined strategy i think someone would be more decisive in creating their decision and reacting towards the market.
the strategy that you mentioned are all good but it seems that there are many details that gone missing, like most of them are indeed some scenario that gonna be getting realized if one jumping into some trading and investing career, but also there are some preventive measurements, like making an entry while the coin only has gone down massively helps you greatly in avoiding future dumpings if the coin were to make some recovery.
such strategy is essential if you truly wanna score some good profit after all by having good entry in the first place, you are already destined to make some profit in the long run.
the strategy that you mentioned are all good but it seems that there are many details that gone missing, like most of them are indeed some scenario that gonna be getting realized if one jumping into some trading and investing career, but also there are some preventive measurements, like making an entry while the coin only has gone down massively helps you greatly in avoiding future dumpings if the coin were to make some recovery.
such strategy is essential if you truly wanna score some good profit after all by having good entry in the first place, you are already destined to make some profit in the long run.
No matter how good or bad a trader you are if you are not doing the risk management then it will be very difficult for anyone to survive in this trading financial market.
No matter you are a future trader or a spot trader, a swing trader, or a day trader, in every kind of trading risk management plays a very important role. You should know how much percentage of your portfolio you should risk at one trade so that in case the trade goes in loss and not according to your trading plan, you do not lose majority of your portfolio.
A stop loss is a type of strategy, specifically a risk management strategy. However, it is crucial to be highly efficient in implementing such a strategy because our goal in trading is not merely to minimize losses, but to maximize profits. Personally, I would rather risk losing everything than remain in a prolonged trade that remains unprofitable.
I would prefer minimising the loss over the profits so it depends on every traders but the conservative strategy is minimal risk and whatever the profit is. I don't understand why we need to risk everything when we are unprofitable for a long time, I will just out it on HODL until it makes profits than decision to sell for huge loss for our capital.But traders rarely think on this way, which causes them to take too many risks and lose so much money that regardless of their skill level recovering the money they have lost becomes an impossible mission.
with refined strategy i think someone would be more decisive in creating their decision and reacting towards the market.
the strategy that you mentioned are all good but it seems that there are many details that gone missing, like most of them are indeed some scenario that gonna be getting realized if one jumping into some trading and investing career, but also there are some preventive measurements, like making an entry while the coin only has gone down massively helps you greatly in avoiding future dumpings if the coin were to make some recovery.
such strategy is essential if you truly wanna score some good profit after all by having good entry in the first place, you are already destined to make some profit in the long run.
the strategy that you mentioned are all good but it seems that there are many details that gone missing, like most of them are indeed some scenario that gonna be getting realized if one jumping into some trading and investing career, but also there are some preventive measurements, like making an entry while the coin only has gone down massively helps you greatly in avoiding future dumpings if the coin were to make some recovery.
such strategy is essential if you truly wanna score some good profit after all by having good entry in the first place, you are already destined to make some profit in the long run.
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