Risk management , how ? - page 3. | Bitcointalksearch.org

ufaiz50

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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.

Kurokonobasuke

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Yes, indeed we need to managed the number of risk in trading to prevent of big loss of savings. Base on my experience I will shared my tips. First, before we take a risk we need to plan to prevent the losses of all traders, because in planning we can make sure of our winning in trading. Second, we need to know on what is bull market and bear market because it is a secret recipe to earned profit in trading. Third, never be a greedy trader and emotional because a greedy trader won't never earned a profit and could be possible to a big loss of profit. All my tips is just my own experience, but you can developed your own risk management that will suited you and can help you to earned profit in trading.

Kasabus

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Quote from: adzino on February 19, 2020, 06:17:44 PM

The main point over here is not to be reckless. Being cautious and concerned about the market will help you reduce your risk. Secondly, you can reduce your risks if you go through the market and invest on selected well known coins only rather than investing on hundreds of different altcoin. If you go for lots of different altcoins, then there is high chance of you investing on a shitcoin. Keep yourself updated with the market. Manage your investment carefully. Understanding the risks and outcomes of different situation and how to handle them also falls on the risk management steps.

You can invest only on those well developed coins and if possible, focus more on bitcoin to maximize your portfolio and never waste your money on those newly discovered altcoins that will only live short time and die eventually. And when you see you are starting to make profits, don't be greedy. And do not stop on making research to discover your own strategies to make profits and not just rely on some other's failed strategies. Learn to work for it.

MWesterweele

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Quote from: adzino on February 19, 2020, 06:17:44 PM

The main point over here is not to be reckless. Being cautious and concerned about the market will help you reduce your risk. Secondly, you can reduce your risks if you go through the market and invest on selected well known coins only rather than investing on hundreds of different altcoin. If you go for lots of different altcoins, then there is high chance of you investing on a shitcoin. Keep yourself updated with the market. Manage your investment carefully. Understanding the risks and outcomes of different situation and how to handle them also falls on the risk management steps.

By it means of having discipline it makes you help to lessen the risk by being a carefully especially when monitoring the market. And to manage risk you need to be aware to always checked the monitor for every changes happen. Also you must understand about the possible outcome everytime you do trading and to find out the mistake you do, and when you encouter again your rwady to handle it.

adzino

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The main point over here is not to be reckless. Being cautious and concerned about the market will help you reduce your risk. Secondly, you can reduce your risks if you go through the market and invest on selected well known coins only rather than investing on hundreds of different altcoin. If you go for lots of different altcoins, then there is high chance of you investing on a shitcoin. Keep yourself updated with the market. Manage your investment carefully. Understanding the risks and outcomes of different situation and how to handle them also falls on the risk management steps.

palle11

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Quote from: Hilsgort_T on February 04, 2020, 02:45:19 AM

I think it’s important for you to understand that most strategies that really make a profit will not work if many people use them. Therefore, people who find such strategies in 99% of cases do not talk about it.
Therefore, for myself, I see the only way out - to monitor the market and try to find my own strategies that will work.

Then trying to find your own strategy that works is how those 99% of traders have struggled with their trade before being successful and would not share easily or try to open a signal group.
Most of the strategy are worked on for better trading.

4IRIK

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I'd recommend to make a structured plan with trading schedule and limits. To identify the max drawdown, the number of losing trades etc. These are the basics of RM to start with. Also, you may try the software to help you in it (automatization of risk management):

[b https://www.bitinsure.com/
[/b]
It is an automated risk monitor. I set the limits like max drawdown and other options at several Bitmex accounts and Bitinsure sends a notification since the limit is reached. This way I can have a rest and get notified when sth goes wrong. Also, it provides automated statistics reporting. This thing is useful for trades analysis

Also, try to learn about money management. It works along with risk management to multiply the capital.

Good luck!

hahay

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Quote from: redsun114 on February 19, 2020, 12:39:48 PM

Risk management would always be one of the most important aspect to study no matter how experienced you turn. You always need to plan a better risk management so that you can minimize loss each time price rallies in opposite direction. Some of the most common risk management would be to set a stop loss, trade with less than 5% of your total capital, also set stop-profit, never go for the trade if you feel like the graph might bounce back anytime.

You would also need to sharpen your trading skills in order to study more about risk management. A proper risk management would never make you have excess loss no matter how fast the price moves in opposite direction.

Right, set a stop loss will be the main part and of course risk management in trading has many factors that are of serious concern and including emotional control and patience we should also be aware of because situations and conditions are not always fixed in trading so that requires us aware of the small things though. We cannot ignore the slightest factor there because after all risk management in trading is not just about paying attention to charts for profit and loss.

nekonyun

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If myself use an additional method to minimize risk set stop loss every time buy a coin to prevent the price down suddenly and not over trade because not good for psychology

matchi2011

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Quote from: BitcoinHunt3r on February 19, 2020, 12:13:01 PM

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

There are a lot of ways to minimize risk in trading. If me i only use what i know which is like martingale, so if the coin dumped again i wait for good price to buy back and maybe with that can minimize my losses, in case coins that i bought not a dead coin.

I'm not sure about that particular strategy as what I understand with martingale once being used inside gambling you'll keep doubling your money until you win, inside trading you need to have better understanding before you can choose which coins to invest. You cannot do martingale since the directions of each coins is unpredictable you are prone to lose most of the time as there are many shit coins around.

redsun114

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Risk management would always be one of the most important aspect to study no matter how experienced you turn. You always need to plan a better risk management so that you can minimize loss each time price rallies in opposite direction. Some of the most common risk management would be to set a stop loss, trade with less than 5% of your total capital, also set stop-profit, never go for the trade if you feel like the graph might bounce back anytime.

You would also need to sharpen your trading skills in order to study more about risk management. A proper risk management would never make you have excess loss no matter how fast the price moves in opposite direction.

BitcoinHunt3r

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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

There are a lot of ways to minimize risk in trading. If me i only use what i know which is like martingale, so if the coin dumped again i wait for good price to buy back and maybe with that can minimize my losses, in case coins that i bought not a dead coin.

justdimin

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The best option for anyone to manage their risk would be divesting into many many things instead of just investing into one thing.

For example, I have some money in savings account gaining interest, I have some wave, I have some bitcoin, I have a bit of ethereum and I am looking into buying couple of websites that are making profits as well, that way I make sure that I will always make money somewhere even if I lose money anywhere else.

Next stop, after all of this will be gold and real estate, I know gold is easier because you buy a little bit of it (not physical gold itself but gold account on bank) but real estate will be the hardest one, if I could get just a small tiny shop that I can rent out to, I will be set for life with all of the investments combined together, I know that. That is the best risk management you can do.

RealMalatesta

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Quote from: maydna on February 19, 2020, 04:18:45 AM

Quote from: Btc_1856 on February 19, 2020, 01:40:26 AM

Exactly, people are very keen to make a profit on every trade they place, but sometime we have to face challenges even though we are very experienced. Based on the market situation we should always implement different strategies in order to overcome our loss. That's why we should always monitor the market and based on that we should act.

That makes some people are greedy to chase the profit even if they know that the current market still unpredictable. They forgot that the market could move anywhere, even if they already make a prediction. The market situations will always change every day, and if we don't analyze to make a prediction, we cannot get a low price to buy. Risk management will be a must that we should have to prevent the loss, so we can always remember that we need to follow the market moves.

Cryptocurrency markets are most unpredictable. Their high volatility nature can make them move in any direction in huge volume. A lot of people usually go for panic sell once they start seeing the price going in opposite direction with huge volume. This is where they have to face excess loss.

A proper risk management would never allow you to panic sell your coins. Instead setting a stop-loss would only give you minimum loss even if you failed to predict the further movement of the charts. We can see that BTC markets move across $500 - $1000 in a single day and that can be dangerous sometimes as the price might quickly move in negative direction in just few minutes if you fail to speculate the graph continuously. At this time, stop-loss would be a life saver.

Distinctin

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Quote from: spike420211 on February 18, 2020, 06:03:06 PM

As part of psychology, I used strategies that helped me keep my emotions in check while preventing unnecessary movements and mistakes.
As part of financial management, I determined the size of the deposit and the size of the sub-deposit with which I could trade.
I have always tried to act within the framework of the deposits I have previously determined.

Controlling our emotions is somewhat like we are also reducing risk. Yet, emotional conditions can't easily manage nor to be controlled all the time.
Risk management is a big challenge to everyone and I don't need tools to help with but it all purely in our decision and being proactive at all times. It is quite to see people suffer big losses is not because they can't manage to handle the risk in here but it is all how they manage their investment along the way.

maydna

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Quote from: Btc_1856 on February 19, 2020, 01:40:26 AM

Exactly, people are very keen to make a profit on every trade they place, but sometime we have to face challenges even though we are very experienced. Based on the market situation we should always implement different strategies in order to overcome our loss. That's why we should always monitor the market and based on that we should act.

That makes some people are greedy to chase the profit even if they know that the current market still unpredictable. They forgot that the market could move anywhere, even if they already make a prediction. The market situations will always change every day, and if we don't analyze to make a prediction, we cannot get a low price to buy. Risk management will be a must that we should have to prevent the loss, so we can always remember that we need to follow the market moves.

Btc_1856

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Quote from: davinchi on February 04, 2020, 10:03:42 AM

Quote from: quality.crypto on February 04, 2020, 03:50:34 AM

Quote from: Hilsgort_T on February 04, 2020, 02:45:19 AM

I think it’s important for you to understand that most strategies that really make a profit will not work if many people use them. Therefore, people who find such strategies in 99% of cases do not talk about it.
Therefore, for myself, I see the only way out - to monitor the market and try to find my own strategies that will work.

Strategies will work for people who are holding efficiently in the market during at the time of fluctuations, strategies will not work on a daily basis and in some cases, we have to consider the market situations based on that we will make profits. Risk management is a completely different kind of management where we should cover it when we are in loos.

There are a lot of strategies and even individual strategies which might make us recover the loss and might even give us benefits on a daily basis. I am a day trader and I am successfully able to make profits from day trading by following few strategies and implying few patterns on 1 minute and 5 minute graph. Risk management would always include pre-investment precautions as well as post-investment precautions.

These might include your immense knowledge and also the strategies you use to make profits from the markets. It is not necessary that each time we end up in profits, most of the times we even need to face loss and that is the time when we could apply our own strategies to make profits from both the sides of the markets.

Exactly, people are very keen to make a profit on every trade they place, but sometime we have to face challenges even though we are very experienced. Based on the market situation we should always implement different strategies in order to overcome our loss. That's why we should always monitor the market and based on that we should act.

spike420211

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There are many tools to reduce risks. However, only a few will show working capacity for each individual trading strategy.
By and large, your main task is to reduce risks where they can be reduced and to risk where it is not necessary.
For me personally, the main places for risk reduction were psychology and financial management.

As part of psychology, I used strategies that helped me keep my emotions in check while preventing unnecessary movements and mistakes.
As part of financial management, I determined the size of the deposit and the size of the sub-deposit with which I could trade.
I have always tried to act within the framework of the deposits I have previously determined.

salkan3

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For risk management you may want to consider combining all of your orders with a stop order and take profit order.

Stop order limits your loss and take profit locks in your profits.

Some exchanges will allow you to automatically submit stop orders along with your orders.

One that does this is mushino., other I believe is Blade.exchange.

LUCKMCFLY

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Quote from: ScamViruS on February 04, 2020, 04:32:13 AM

~snip~

This decision may have some type of cons, because if Bitcoin falls in price, all Altcoin will bleed a lot and with large percentages, unless a short trade is made. That way you can win, I rely on the premise that the only currency that has a life of its own is Bitcoin and that everyone follows is Bitcoin. However, the cryptocurrency diversification advice in some scenarios is feasible, especially when Bitcoin is in an bullish trend.

Topic: Risk management , how ? - page 3. (Read 939 times)