Risk management , how ? - page 2. | Bitcointalksearch.org

traderethereum

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Quote from: Lecam on February 28, 2020, 06:43:45 AM

Quote from: Jhonyguy on February 01, 2020, 03:58:54 AM

successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules are there to minimise risks

You can minimise risk if you buy only the popular coins that you can trade everyday so that you get profit. Coins that popular are profitable don't buy coins that you know that you can lose your money there l. Be smart and choose wisely before you gonna buy coins that you want to trade.

But in the bear market, it still difficult to minimize the risk even if we only buy popular coins because popular coins cannot always give the profit. You can see it's happening with bitcoin, and this month, bitcoin is not showing good progress to increase higher, but it is down deeper and back to $8k. To minimize the risk will need more attention because it is not about how much money you will use to buy the coin, but it is also related to what coins you pick in the market to trade and not just about choose the popular coins.

monero.org

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Risk management includes learning to trade well. Learning how to read the charts by doing so means you can calculate whether to go long or short. You will only appear greedy when you don't know when to exit your trade, when you see the chart that the market is almost going to burnout you can calculate and sell and wait again. You will only realize you being greedy when you lose the trade because of greed or simply chasing the pump when its already about to dip.

jostorres

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Risk management will help you to minimize your loss, but it’s not a guarantee that you’re going to be making profit. You’re applying risk management in case of when you’re in the wrong position so that you will be able to escape from it. Someone mentioned that you have to reduce the number of coins you have on your portfolio and I second (support) that he’s right. Some people are just so dumb that they invest in like twenty cryptocurrencies and even more coins that can’t keep track of.

How do you invest in so much markets when you know that there is no possibility that you can follow up with all of them? It is not good. Bitcoin and Ethereum might be going up but other coins you have invested in might crash and disappoint you and you will lose everything you have.

It is best to invest in few coins that you can easily capture, even investing only in bitcoin is good. You should also look into other investments that are not cryptocurrency.

Janation

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Quote from: Lecam on February 28, 2020, 06:43:45 AM

don't buy coins that you know that you can lose your money there.

I do say this to people but I don't think we should always stick to them.

If you really are taking care of your balance, you should really stick to them but you should have the knowledge of investing and trading them since they are popular, the volatility is much higher than those lower altcoins. Since you are already taking a risk just by investing in cryptocurrencies, take a step further by investing in some good altcoin. As I always said, gain knowledge since that will really help you become a successful trader or investor.

Lanatsa

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Quote from: Oasisman on February 28, 2020, 07:09:49 AM

Quote from: Lecam on February 28, 2020, 06:43:45 AM

Quote from: Jhonyguy on February 01, 2020, 03:58:54 AM

successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules are there to minimise risks

You can minimise risk if you buy only the popular coins that you can trade everyday so that you get profit. Coins that popular are profitable don't buy coins that you know that you can lose your money there l. Be smart and choose wisely before you gonna buy coins that you want to trade.

There's no way you'll know that you're going to lose your money on a certain coin. Investing is similar to gambling, though they have different level of risks, but the result is uncertain on whether you will lose your money or you'll get a profit. Choosing to buy top coins in the market doesn't guarantee you a profit either, it's still up to you how you manage your investments. Therefore, to reduced the risks on your investment, you need experience, research, and high level of risk tolerance.

Experience is one of the main factors that would really help a certain individual to improve himself.Managing risk isnt really easy and you wont
able to create one if you havent encounter such situations and its a must thing if you do like to sustain into this market.It all matters with taking risk
for us to earn or profit and yes its similar to gambling but this one do have high chances on making money if you've done well into your analysis.
Easy to say but actually hard to attain such skills.

Oasisman

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Quote from: Lecam on February 28, 2020, 06:43:45 AM

Quote from: Jhonyguy on February 01, 2020, 03:58:54 AM

successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules are there to minimise risks

You can minimise risk if you buy only the popular coins that you can trade everyday so that you get profit. Coins that popular are profitable don't buy coins that you know that you can lose your money there l. Be smart and choose wisely before you gonna buy coins that you want to trade.

There's no way you'll know that you're going to lose your money on a certain coin. Investing is similar to gambling, though they have different level of risks, but the result is uncertain on whether you will lose your money or you'll get a profit. Choosing to buy top coins in the market doesn't guarantee you a profit either, it's still up to you how you manage your investments. Therefore, to reduced the risks on your investment, you need experience, research, and high level of risk tolerance.

Lecam

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Quote from: Jhonyguy on February 01, 2020, 03:58:54 AM

successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules are there to minimise risks

You can minimise risk if you buy only the popular coins that you can trade everyday so that you get profit. Coins that popular are profitable don't buy coins that you know that you can lose your money there l. Be smart and choose wisely before you gonna buy coins that you want to trade.

yanto@1977

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If you are beginner take courses and join some group to raise your knowledge and strategy. Expert can do more dangerous than us, they like challenge their skill and emotion by replace strategy without risk management but always use little money to test it. So. risk management is depend trader/ investor character. I can't recommended any strategy because every trader/ investor free to decide which one is better but the rules is always same, set it before enter the market, don't ignore it.

Ridwan Fauzi

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Quote from: GreatArkansas on February 27, 2020, 07:47:53 AM

Quote from: Ararbermas on February 26, 2020, 11:14:13 PM

You know im not expert in trading but for me the most important is self discipline because if you don't have such manner you can't avoid risky situation .i actually don't believe in strategies because it's still useless if you don't know how to set your limitations spending money through everything.

Yeah, it's kinda risk management in overall, but in trading, you should be more practical especially if you really started trade frequently.
Strategies also work in trading, you should also got that beside your risk management.
A good risk management like having a risk:reward ratio for every trade you make and have strict plan when to take profits, cut loss or enter the trade.

The strategy is not everything but an experience everything, is it?

I have a friend and I can say him as an expert to trade, so I decided to learn about trading to him. But, he didn't give any knowledge to me, he just suggesting to read about technical analyst and fundamental analyst by myself. Because he said, in the trading field you can rely on the strategy, sometime the strategy will kill you, but you must make an evaluation with every trade you made. Through this thing you will aware about trading as a whole, and also I was aware that strategy can came when I'm trading.

GreatArkansas

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Quote from: Ararbermas on February 26, 2020, 11:14:13 PM

You know im not expert in trading but for me the most important is self discipline because if you don't have such manner you can't avoid risky situation .i actually don't believe in strategies because it's still useless if you don't know how to set your limitations spending money through everything.

Yeah, it's kinda risk management in overall, but in trading, you should be more practical especially if you really started trade frequently.
Strategies also work in trading, you should also got that beside your risk management.
A good risk management like having a risk:reward ratio for every trade you make and have strict plan when to take profits, cut loss or enter the trade.

iv4n

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Many people ask similar question, how to do this or how to that, and we see similar answers along with links to some sites that offers to do a job for you, all you need to do is to pay for that. About this specific matter, risk management, there is a simple answer, it's knowledge. You need to cross the street, do you know what you need to do? How did you learn that? When you plan to cross a highway do you need to be extra careful because there are more cars and risk is higher because of that?
It's the same in trading, you need to know where are you going (your final goals, to earn dollars or more bitcoins, or other alts), you need to know pairs, fees, and same as you do when you are crossing a street you need to look left and right and to see what is coming. Where do you find information, where do you look is the most important in trading, finding the best source of info about your trading pair is essential. Educate yourself, learn more and it's how you reduce the risk. When you don't have that it can be like crossing a highway, blindfolded!

maydna

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Quote from: mbakruroh on February 26, 2020, 08:32:38 AM

There's no correct risk management because reduce risk is depend your target, make it realistic and can accepted in your mind if fails. Many strategy fail not because don't know how to use it but replace imagination in their calculation, wrong place my friend. If you are daily trader use 3% - 5% as your daily target and set your risk below it, don't make it too far because market is unpredictable.

When you see the market is unpredicted, it is better to leave the market for a while so you can reduce the risk a lot. You will never know when the market will be back at a higher price, but if you can hold yourself for trading because the situations are not good, you will not regret it if the market is going down for more. The risk management is how we can manage how much money we use for trading, and we don't have to force ourselves to try to buy the coin if the market is still unpredicted.

Ararbermas

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You know im not expert in trading but for me the most important is self discipline because if you don't have such manner you can't avoid risky situation .i actually don't believe in strategies because it's still useless if you don't know how to set your limitations spending money through everything.

ArIMy11

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You must accept that there is a risk in everything. The higher the money you put on the higher higher the risk but the higher the profit. In trading do not let your emotions control you. Just keep calm. Maybe one way of risk management is that determine the risk. Is it financial risk ? Or is it your strategy that is risky ? Is it the exchange rate ? Or maybe country risk ? After you identify, of course you can find countermeasures to avoid the risk. With crypto, it is additional thing to be learned since it is different from our paper money. We must really know first its nature before entering trading.

mbakruroh

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There's no correct risk management because reduce risk is depend your target, make it realistic and can accepted in your mind if fails. Many strategy fail not because don't know how to use it but replace imagination in their calculation, wrong place my friend. If you are daily trader use 3% - 5% as your daily target and set your risk below it, don't make it too far because market is unpredictable.

imstillthebest

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Quote from: milewilda on February 24, 2020, 06:11:59 PM

Quote from: Mumbeeptind1963 on February 24, 2020, 06:00:19 PM

Quote from: ufaiz50 on February 19, 2020, 11:12:06 PM

Quote from: TheUltraElite on February 01, 2020, 04:59:16 AM

1.You can minimize risk by reducing the size of your portfolio.

2. Move to other sectors that just cryptocurrencies.

This is what I must do to minimize risk, from my experience if you want to manage your risk that means you have to manage your capital too.

Diversification of investment is an easy and common thing to do for management so that it produces less risk. There is more about the place of investment with a small risk level and some other calculations that involve your finances. You also have to maintain the stability of your portfolio every day, because if you speak at the level of crypto volatility then it must be done.

I speak outside of a person's lack of psychology because everyone has different conditions so in my opinion only you can seek from solutions related to how to manage risk.

For me to manage the risk you need lower your invest, but before that know your investment if its have potential to grow. Also when you finf a good investment you dont need to invest all you money even you know there possibility you get huge profit, its better to split your money

"Dont put your eggs on one basket"

This had always been an effective thing on investment world and talking about risk management then this one is ideal because you've divided up the risk into various numbers or parts.
Any investment do have its ups and downs and when you do have the option for some recovery then it wont really be that hard for you to get up even you experience losses.
Unlike on having a single investment failure will really be hard to get up if there are no other sources you are getting into.

that if you are going to invest on other type of assets and not just on crypto because here on crypto once one major crypto is down others will follow too . diversifying fund on crypto is not really effective imo so its better if will only foccus on one major crypto asset so that we can get the most our of it . in my case i diversify by buying gold and other natural metals and then i pick bitcoin as my crypto investment . this is my way of managing the risk or reducing the risk . so far so good

alani123

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Risk managment with cryptocurrency is something tricky.

Standard strategies aren't very useful. It's impossible to diversify within the crypto economy as every single asset in it has huge correlation with BTC.
Also, risk factors are very different. One should stay away from cryptocoins with old and weak networks, or ICOs that are very speculative and with no real work behind them. The characteristics to look out for also vary depending on the type of crypto. Ethereum tokens have different technical challenges from coins with their own blockchain.

If you ask me, it's more about studying technical parameters if you want to compare crypto assets. Sadly or not, there's no market and board overlooking listings in crypto exchanges. Any project could turn scam except community based ones like LTC/BTC etc. Large projects that are run privately are a larger risk. See TRON, crypto.com, Ripple etc.

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Quote from: ufaiz50 on February 19, 2020, 11:12:06 PM

This is what I must do to minimize risk, from my experience if you want to manage your risk that means you have to manage your capital too.

Not directly related though. Risk often increases without the increase or decrease of capital. Mitigating risk by increasing capital is like Martingale in gambling which is going to fail unless you stop at one point.

Quote

Diversification of investment is an easy and common thing to do for management so that it produces less risk.

But few people do it. Also dont get me wrong. I meant diversification in different sectors (like commodities, stocks, gold etc) not altcoins. Among crypto your lions share or 100% of assets should be bitcoin. Forget about altcoins.

Quote

There is more about the place of investment with a small risk level and some other calculations that involve your finances. You also have to maintain the stability of your portfolio every day, because if you speak at the level of crypto volatility then it must be done.

The whole volatility issue of bitcoin is an exaggeration. Those who watch the markets know how much volatility occurs and it usually ranges less than 5% every 24hours. It is more often seen when big news happen or a huge dump which was not predicted. You dont have to believe me, because you can verify it from the charts yourself.

milewilda

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Quote from: Mumbeeptind1963 on February 24, 2020, 06:00:19 PM

Quote from: ufaiz50 on February 19, 2020, 11:12:06 PM

Quote from: TheUltraElite on February 01, 2020, 04:59:16 AM

1.You can minimize risk by reducing the size of your portfolio.

2. Move to other sectors that just cryptocurrencies.

This is what I must do to minimize risk, from my experience if you want to manage your risk that means you have to manage your capital too.

Diversification of investment is an easy and common thing to do for management so that it produces less risk. There is more about the place of investment with a small risk level and some other calculations that involve your finances. You also have to maintain the stability of your portfolio every day, because if you speak at the level of crypto volatility then it must be done.

I speak outside of a person's lack of psychology because everyone has different conditions so in my opinion only you can seek from solutions related to how to manage risk.

For me to manage the risk you need lower your invest, but before that know your investment if its have potential to grow. Also when you finf a good investment you dont need to invest all you money even you know there possibility you get huge profit, its better to split your money

"Dont put your eggs on one basket"

This had always been an effective thing on investment world and talking about risk management then this one is ideal because you've divided up the risk into various numbers or parts.
Any investment do have its ups and downs and when you do have the option for some recovery then it wont really be that hard for you to get up even you experience losses.
Unlike on having a single investment failure will really be hard to get up if there are no other sources you are getting into.

Mumbeeptind1963

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Quote from: ufaiz50 on February 19, 2020, 11:12:06 PM

Quote from: TheUltraElite on February 01, 2020, 04:59:16 AM

1.You can minimize risk by reducing the size of your portfolio.

2. Move to other sectors that just cryptocurrencies.

This is what I must do to minimize risk, from my experience if you want to manage your risk that means you have to manage your capital too.

Diversification of investment is an easy and common thing to do for management so that it produces less risk. There is more about the place of investment with a small risk level and some other calculations that involve your finances. You also have to maintain the stability of your portfolio every day, because if you speak at the level of crypto volatility then it must be done.

I speak outside of a person's lack of psychology because everyone has different conditions so in my opinion only you can seek from solutions related to how to manage risk.

Quote from: TheUltraElite on February 01, 2020, 04:59:16 AM

1.You can minimize risk by reducing the size of your portfolio.

2. Move to other sectors that just cryptocurrencies.

This is what I must do to minimize risk, from my experience if you want to manage your risk that means you have to manage your capital too.

Diversification of investment is an easy and common thing to do for management so that it produces less risk. There is more about the place of investment with a small risk level and some other calculations that involve your finances. You also have to maintain the stability of your portfolio every day, because if you speak at the level of crypto volatility then it must be done.

I speak outside of a person's lack of psychology because everyone has different conditions so in my opinion only you can seek from solutions related to how to manage risk.

For me to manage the risk you need lower your invest, but before that know your investment if its have potential to grow. And when you find out it is a good investment you dont need to invest all you money, even you know there possibility you get huge profit. Its better to split your money because is to risky to put it all never ever put all your money in one investment because that is not a good players do, putting all your money foe me is what you doing is no knowledge or learnings at all.

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