Risk management - page 6. | Bitcointalksearch.org

GreatArkansas

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

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

Most of the mistakes also related to this are traders that are not sticking to their plan, let's say for example, they have a plan for a trade on this pair, before they enter the trade, they already have the plan.
And then once the trade is active, some traders can't wait and will end up not following their plan, early exit or early stop loss, which in some cases results a losses or not following the risk:reward ratio.

Rockstarguy

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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.

Risk management is something every trader needs to have in mind so far as their is loss in trading. Having risk management in the back of the mind it will help one to do the right thing by trading with the amount one can afford to lose, and it will also help in controlling greed in trading. Consciousness of risk is very important and it is a guild from much loses, risk management is always an important aspect in trading and it is one of the qualities of being a good trader.

mindrust

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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.

This goes both ways. If you don't take any risks, you can't make any profits (or lose any money). If you want to make lots of money with so little investment, you should take the maximum risk possible. You just have to be on the right side of the trade but how are going to decide that? That's where it becomes a gamble if you are making your trades not based on any data.

If the trader always focuses on the risks like you said then he will end up taking no risks because he will be eliminating risks instead of adding to them. How is he gonna make any money then? He will not.

awik p

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risk management must be applied in trading, so that before we make a transaction we will know the possibilities that may occur, that way targets and stop losses must be applied, so that if the analysis is wrong, then we already know the losses that will be faced, so we must comply, because many of us are actually risk management has been implemented but in practice it is difficult to implement, this is the result of a psychological attack, thus disrupting the initial plan

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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 city cannot deny or rule out this risk management in any case, especially in trading. Because manh, risk management can affect our trading results. Risk management is not only to avoid big losses, but also to make us aware of the risks we might take, so that we are willing to do more by learning and developing strategies that are suitable with good knowledge. And risk management seems to be able to help cities to control themselves.

Smartvirus

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Quote from: Nrcewker on June 02, 2023, 12:55:48 PM

If you can’t manage the risks, then yes no one can stop you from making losses. In trading or online investments, there are always high risks of getting losses along with the profits. So if you don’t keep a stop loss or manage the risks, then yes there will be chances of getting heavy losses. It’s always advised to adapt to the market and trade only after having firm knowledge on the coin, hence this will help you to minimise the losses. But sadly many traders fail to follow this.

One who doesn't know how to manage risk is one who is set to make a lot of loses in trading. With the opportunity to make several times tunr over on your capital, a lot of people have take trading to a highly professionalise level where, you can't hope to survive as a newbie trader. Better for most, you've got resource materials everywhere you look online and the demo platforms to develop and practice trading but, your still going to make some loses. These loses would be a lot more minimal should you be able to scale your tracing with the idea of having risks for ich you could manage or not and deciding at what point you feel is safe to go into the market from your analysis.

jeraldskie11

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Risk management is essential in trading. Sometimes you think you're winning because of winning trades, but when you look at your PnL, you're losing. Risk management involves estimating both the risk and the reward. Some traders are still losing trades because their take profit area is too high, causing the trade to return to their stop loss area instead of earning. That is why a partial take profit is always recommended and is incorporated in risk management.

blockman

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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.

All of what you've said are right. But when things are up to the point for a trader who losses his emotion, these can't be easily remembered.

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

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

This is low-key advice. But many forget to take profit when they're greedy and think that the profit that's on their hand isn't that much. The tendency is to wait further to make the profits larger but it ends with almost nothing. That's based on true stories and experiences and that's why whenever you get to profit, just take it and have no heart feelings. With little profits, it's much better than to take home with nothing lose all of your trades.

Mahanton

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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.

1. Golden rule on this investment or trading world here on crypto on which, dont invest or make use of the amount which you cant afford to lose. Mostly noobs would really be having that kind of impression
on where they do really go after for that quick and easy profits.

2. When you are on Green, then take profit; If you are in reds then its either you do set SL or would really be just holding until it recovers. As long you arent dealing with
futures then you wouldnt really be liquidated and this is where test of patience would really be seen.

3. This is where controlling greed or simply overall emotions of a certain person on which they would really be needing to act fast according into the condition whether they would really be
just cutting their losses or would really be wait up until they would be liquidated and would tend to deal up with another one or simply move on.

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Quote from: Viscore on June 02, 2023, 04:48:17 PM

That is why always take advantage when there are opportunities to make profits. Otherwise, if you follow your greed, you will end up losing all your future profits. The whole trading market is very unpredictable, one day the prices are surging, the next hours you might see them reversing. So never ignore the possibility to make profits. You are trading to grow your money, so if there are potential profits, then go and trade.

Perhaps it was really unpredicted and so earning a profit can't be sure as well. That is why we should not lose any opportunities here if possible because we need to wait for it a few days to see it back or possibly never. But never I have to suggest trading if that person doesn't have any confidence or believing himself that he can do it because, in the end, he would still fail and lose.

We have to remember that not all strategies will work on us and using a stop-loss strategy is very helpful, especially for those who are too emotional.

usekevin

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The trading rule will very to person to person.Some may like to save his margin then huge profit.Some people are ready to hold to longer period to earn huge profit.Other people like to get margin profit of 5-10 percentage daily by the day trading.So you will be able to fit in any of this slot,I had think you wish save the capital then the profit from it.Fir this type of trading,you just need to wait till market response to your investment.It’s essential one to take risk in trading to earn more money from the trading in long run.

Viscore

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Quote from: Oshosondy on June 02, 2023, 03:50:00 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

To protect your margin? What do you mean by margin? Or you mean too protect the trading fund?

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

Focus on the risk not rewards.

A good trader will focus on both risk and reward.

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

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

This is correct. There are times I waited to gain more and the price reversed and no more favour me. Sometimes, it can correct itself back while sometimes, especially if I use high leverage, it might lead to money loss.

That is why always take advantage when there are opportunities to make profits. Otherwise, if you follow your greed, you will end up losing all your future profits. The whole trading market is very unpredictable, one day the prices are surging, the next hours you might see them reversing. So never ignore the possibility to make profits. You are trading to grow your money, so if there are potential profits, then go and trade.

alastantiger

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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.

- Is there any profit that comes from being risk avoidant? That is, if a trader should focus on the risks and totally avoids them, will automatically make profit?

- There are several ways traders react or manage risks both expected and unexpected which is more than just using stop loss. Sometimes, taking breaks is also considered a risk management strategy too.

- The market is dynamic and every trader must be alert to it.

Fesatmas

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Quote from: Flexystar on June 02, 2023, 02:04:11 PM

In a working theory nothing like that happens. Honestly, what happens is exactly the opposite of it where we end up losing more than what we could afford to lose or risk. This is called as FOMO stuff, or sometimes it is also associated with the emotional breakdown where we think we could get back the profits or investment that we lost. More specifically it would be investment which is going negative.

The risk management that can happen in the above case is simply to practice controlling our emotions while making any trades. I have seen my own trades getting broke due to very this thing. However, I never controlled them properly and mostly I ended up stopping myself from trading. That was my risk management step for the good.

I conclude that you are discussing risk management for a beginner, where the first step in risk management for a beginner is being able to control yourself when you experience a loss. Losing more than we can gain is one of the steps that beginners must go through when they want to really get into the world of trading, and later this can be used as a lesson or used as a reference so that losses don't come again. . Learning to control yourself, understanding market movements, mastering strategies, limiting profits at certain times, and knowing where to stop trading when you experience losses are the basics that a trader must have. This is indeed difficult, but indeed this has become the rule when someone wants to be a healthy trader. If trading is not based on knowledge then it is no different from gambling. You decide to quit because you can't control yourself, I think this is the right and best decision for you, maybe this field is not suitable for you because not everyone can do it.

Flexystar

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In a working theory nothing like that happens. Honestly, what happens is exactly the opposite of it where we end up losing more than what we could afford to lose or risk. This is called as FOMO stuff, or sometimes it is also associated with the emotional breakdown where we think we could get back the profits or investment that we lost. More specifically it would be investment which is going negative.

The risk management that can happen in the above case is simply to practice controlling our emotions while making any trades. I have seen my own trades getting broke due to very this thing. However, I never controlled them properly and mostly I ended up stopping myself from trading. That was my risk management step for the good.

pawanjain

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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.

A wise investor once said, protect your capital and never lose it. If we lose some trades that is completely okay.
It's normal to lose trades because that's how we learn but we should never lose all of it which happens when we don't use stop losses.
Then comes the harder part of taking profits which is a skill not everyone has.

hugeblack

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

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

Risk management is a science that is taught and cannot be summarized in 3 tips, just as these tips are not golden or ideal for everything, and the evidence for this is that I am a supporter of not using a “stop loss” trade within a reasonable range and when you lose consider it a complete loss and do not try to sell at a loss, It is true that you lose your money, but from the beginning, you were sure of your strategy and that you were trading with small amounts.

Therefore, although your advice is good, trading is very complex, and in any case, risk management is related to psychological and analytical management more than a plan to follow.

Nrcewker

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If you can’t manage the risks, then yes no one can stop you from making losses. In trading or online investments, there are always high risks of getting losses along with the profits. So if you don’t keep a stop loss or manage the risks, then yes there will be chances of getting heavy losses. It’s always advised to adapt to the market and trade only after having firm knowledge on the coin, hence this will help you to minimise the losses. But sadly many traders fail to follow this.

Findingnemo

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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.

This is why we need to understand the process something called risk: reward ratio.

You can't always focus on the risk part and if you do you can't never make money, sometimes you lose and sometimes you win and that's the reality of trading profession but minimising the loss with stop loss can save you from sudden loss like 30% price fall over short time period.

rozak

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It's important to be careful when making decisions. but if you think too much about the risk that is too much it can also make us make the wrong decision. even if we are too afraid of the risks that will be taken it will make us unable to make decisions. even we can fail when we haven't made a trade.
just use the money we can afford to lose. especially for beginners. and just enjoy the trading being done. All traders want to profit, but we can't really avoid losses either.

Topic: Risk management - page 6. (Read 980 times)