Risk management - page 7. | Bitcointalksearch.org

Bananington

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

A good trader will focus on both risk and reward.

Focusing on the risk gives you an idea of what you stand to loose when you trade. Knowing what you stand to loose prepares you to try as much as you can to avoid it.

Focusing on the rewards will keep you motivated on what you stand to gain, knowing what you stand to gain can help stay committed to becoming good enough to achieve it in trading. Good traders know the risk and rewards.

ancafe

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Every active day trader is required to have a special view of risk management knowledge and this does not only apply to day traders, even all trading activities really need risk management to recognize the impact of trading. Because this speaks of the conditions in dealing with trades that don't work according to certain conditions.

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

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

This advice is more suitable for beginners who are new to trading because for people who have long been associated with trading, the risk reward will be in accordance with the capital we place.

Quote from: Kara3 on June 02, 2023, 02:22:47 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.

What is certain is that trading will not always generate profits, even though people are good at analyzing market conditions and still sometimes they get a loss, but the difference between beginner activities and experienced people. For example, for those who experience losing trades and they will try to increase the next trade to cover the previous loss, such is the activity of those who are experienced in dealing with trade and surely they have been taught by experience to achieve this readiness.

palle11

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

It is not only that you have to have the mentality of if you can't make more money, don't lose the one you have, but you have to ensure that while having losses that it is very minimal that it will be insignificant to your capital. Like if you are losing just $1 to $5 in an account of $250 then you are properly managing your trade but if you only want to retain your capital then you may not be taking proportional risk that can grow your account and you will be stagnant. Meanwhile setting a stop loss and take profit is the right direction for a good money management

karabiber

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Quote from: AicecreaME on June 02, 2023, 06:32:26 AM

Taking the high risk doesn't automatically means you could have a high reward, it depends on your skills in trading, that needs a lot of time, money, and dedication before you could achieve the skills that will bring you profit most of the time.

It is necessary to do research on risk management and asset management before investing. If you are going to invest blindly, your losses will increase and you will have an expensive experience. If you make your investment with as little risk as possible, your assets will increase little by little. Rapid wealth and ambition are the biggest barriers to investment.
When i first started investing i was buying stocks. By constantly trading, my portfolio eroded over time because i dreamed of getting rich fast. I learned that the system does not work that way, and it cost me dearly. What i will say is that when investing put aside your ambitions and reach prosperity step by step with smart strategies.

Kelvinid

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Quote from: Kara3 on June 02, 2023, 02:22:47 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.
...

Usually, people got afraid of trying something like trading because they think too much about the risk and possible losses which they believe it was not right. Because for me, if I have to trade, I'd focus on thinking about what I can do to minimize risk and earn a profit, and building confidence that we can do these things right. The more we think about risk, the more we lose confidence and hard to make good decision because inside our mind is all about uncertainties and this will drive us to losing ends.

Aanuoluwatofunmi

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

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

Though this is a very good idea to take note of while trading and we should also know that bitcoin trading is not the other shitcoins investment whereby we invested our money and at the end of the day we discover that our entire asset or money is gone except if we go for alts or shitcoins.

Quote from: Kara3 on June 02, 2023, 02:22:47 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.

As I've said earlier, you can not loose your whole money, another thing you can do is to make use of DCA method for investment on bitcoin.

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

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

You can't control having experience with losses, especially on high volatile market like bitcoin, everything about it is risk, you can stop losses and take the profits if you think you're already loosing and set in for another entry when the market go bearish enough for you to enter.

Tony116

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When it comes to trading, there are many factors that need to be a smooth combination and used in the right way each other to be profitable. Risk management is only one of many factors, it is important, but you should not focus on it alone and ignore other factors. For me, there is no single best advice in trading, experience everything for yourself and draw your own lessons and experiences. Don't trade on the advice of others or trade on your emotions, everything needs to be calculated carefully. Experience is what you need in trading, you can buy knowledge from others, but the experience can only be exchanged with time and money.

dimonstration

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Dimon69

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

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

I know that you are just trying to emphasize the importance of risk management on trading and I agree with you in regards with that but focusing on risk on trading is like you are just chasing safety over investment. Profitability should be the top priority and just incorporate the necessary risk management simultaneously.

We are trading to earn profit and not to minimize loss. You should not trade if your main goal to minimize your losses you will always be afraid whenever you are experiencing minor losses while you can earn more if you will just bare with the losses a little bit.

Invest what you can afford to lose so that you will not be to cautious on risk in a way that you will sacrifice already the aspect of profitability.

Wiwo

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I experienced something strange during my early attempt to trading and for sure my obvious bad experience originate from my lack of risk management because I went overboard in my portfolio, I started trading with a single pair asset and when I thought I have expertise in the method I went to double my trading pair without taking proper check of the limit difference between the two.

Btw I believe with time I have learned that giving up when loss happens is not a good thing and that risk management is built through experience.

AicecreaME

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This is applicable to newbies since they are still exploring the futures trading. High risk means high rewards, and low risk obvious means low rewards. Most of the people wants the easiest want, therefore they always end up losing their funds because they don't have enough patient to study trading first before asking for a huge profit.

Taking the high risk doesn't automatically means you could have a high reward, it depends on your skills in trading, that needs a lot of time, money, and dedication before you could achieve the skills that will bring you profit most of the time.

irhact

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Quote from: Kara3 on June 02, 2023, 02:22:47 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.

Risk management is very important when trading, one way we can use to manage risk is not investing too much into the market. It doesn't matter how sure you're about the direction the market is about to take, don't use a capital that It can't be ignored and move on if the market goes against your prediction. One mistakes newbies make is putting too much capital because they believe they know how the market will time out.

Cryptocurency market has too much volatility so the direction of the market can change in any second. The market could react to a news that just came out about Bitcoin and change the market movement. Making use of stop loss also contribute to your risk management.

hyudien

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Quote from: Kara3 on June 02, 2023, 02:22:47 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.

I don't think this needs to be reminded anymore because everyone already knows that risk management must be done before playing in the market. However, does this idealism apply if you see a market rally in a relatively short time? Price fluctuations make traders more ambitious and unable to control the profit that has been targeted. It is true that we should make more money, but it will be more difficult for everyone to implement Stop Loss. Believe me, you are entering a trading area where the volume level is very high, so whatever the rules are, they are often forgotten.

MIner1448

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All right! When trading, it is important to follow the rules in order not to lose your money. Don't risk too much, start small. Use a stop loss to limit losses and always take profits when you have the opportunity. Instead of focusing only on profit, focus on controlling risk.

OcTradism

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Quote from: Kara3 on June 02, 2023, 02:22:47 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.

It all starts with how you decide to open your position, start to trade or ignore it and wait for other chances at other times.

Before you open your position, you must know what is price to take profit from your entry price, what is price to cut loss from your entry price. If profit is not like 3 times of loss from entry price, don't trade.

Stop loss order: One of the Best Weapons in Trading
Stop limit order

Two weapons to save you.

Oshosondy

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

Focus on the risk not rewards.

A good trader will focus on both risk and reward.

Quote from: Kara3 on June 02, 2023, 02:22:47 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.

gunhell16

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Practicing Margin Trading is not recommended for beginners only in the cryptocurrency field. Because if you enter this way you will be obliged to borrow money from an exchange to buy crypto. Which can bring you losses if your set-up is wrong and you have no knowledge of it.

Also, crypto trading is very stressful, so emotional traders are not allowed here. Also, margin trade is only for pro traders. That's why DYOR (do your own research) is still important.

Kara3

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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.

Topic: Risk management - page 7. (Read 1026 times)