Risk management , how ? - page 4. | Bitcointalksearch.org

carlfebz2

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Quote from: sana54210 on February 04, 2020, 02:51:36 PM

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

Risk management is the most important thing about trading. If you do not have to follow risk management, you can face huge losses. The first thing you need to do is to share your funds. Will ever do a trade with all the funds. Divide your funds into different coins. Because if one trade goes negative and another may recover your loss. Many traders make a mistake. They buy a coin with all their funds. As a result, if the value of the coin goes down, then they are lose their own all funds.

This is the first and foremost mistakes every newbie traders ever make. They calculate profits before investing into the coin which makes them invest maximum or entire of their capital into one single coin just because their greedy mind said so. Most of them might end up having loss and coins with negative prices.

There are few coins which move in alternative direction of bitcoins or any other coins and holding 50-50 of these coins might be good in order to not have loss even if any one of those coins goes down. Profits are easy but it also brings a lot of risk for each one of us. Those who are ready to take the risk are the ones who fill their bags with profits.

When we do divide out capital then it do also divides the risk involved in regards to our investment and as said where incase we do lost
or on negative on a certain coin yet we do still have chance to recover or break even our losses when we do talk about possibility of
profits on the other coin on which we do invest and thats the advantage but also make it sure that we are investing into potential coins
for us to have that high possibility, if not then it would just worsen up the situation.

sana54210

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

Risk management is the most important thing about trading. If you do not have to follow risk management, you can face huge losses. The first thing you need to do is to share your funds. Will ever do a trade with all the funds. Divide your funds into different coins. Because if one trade goes negative and another may recover your loss. Many traders make a mistake. They buy a coin with all their funds. As a result, if the value of the coin goes down, then they are lose their own all funds.

This is the first and foremost mistakes every newbie traders ever make. They calculate profits before investing into the coin which makes them invest maximum or entire of their capital into one single coin just because their greedy mind said so. Most of them might end up having loss and coins with negative prices.

There are few coins which move in alternative direction of bitcoins or any other coins and holding 50-50 of these coins might be good in order to not have loss even if any one of those coins goes down. Profits are easy but it also brings a lot of risk for each one of us. Those who are ready to take the risk are the ones who fill their bags with profits.

danherbias07

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First of all you will need to choose the best coin there is.
You already avoided a lot of risk from doing that.

Mostly, I do see new traders picking the cheapest coin but there is not much anymore who can improve their value even after a year.
So maybe something like the top 10 in coinmarketcap will do.
I always choose to profit with what I am trading and not with conversion of USD.
That way, I could still make something out of just a little bump in price.
There is higher risk but the return could be greater in the long run.

davinchi

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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.

Oilacris

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

Risk management is the most important thing about trading. If you do not have to follow risk management, you can face huge losses. The first thing you need to do is to share your funds. Will ever do a trade with all the funds. Divide your funds into different coins. Because if one trade goes negative and another may recover your loss. Many traders make a mistake. They buy a coin with all their funds. As a result, if the value of the coin goes down, then they are lose their own all funds.

Diversifying is good but make it sure that you would choose the best among the rest rather than risking your money into
small or little cap coins because you do hope for some pump but thats really a gamble thing.Risk management is crucial
or really needed not only on trading but in all sorts of investment.If you dont have this thing then expect for losses or negative impacts.

ScamViruS

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Risk management is the most important thing about trading. If you do not have to follow risk management, you can face huge losses. The first thing you need to do is to share your funds. Will ever do a trade with all the funds. Divide your funds into different coins. Because if one trade goes negative and another may recover your loss. Many traders make a mistake. They buy a coin with all their funds. As a result, if the value of the coin goes down, then they are lose their own all funds.

quality.crypto

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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.

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.

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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

This is fairly easy. In fact, there are no rules that are truly standard for all traders. It depends more on each person's personality. I have read about Dr. Elder's book Trading for a Living. but the way he accepted the risk was too low and for me it was unreasonable. I still use it according to the signals that he usually uses, but my way of placing a stop loss will be more risky than him because we are trading in a market full of manipulation. Therefore, fluctuations are normal so I usually take risks about 8% compared to 3% of him. In general, just try trading in your market, then experience will show you how to set smart stoploss and proper capital management.

Hilsgort_T

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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.

fullhdpixel

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Risk management could be overdone as well and should be really careful about it. Nobody wants to lose money, nobody wants to buy a coin and watch it go down, that is not something people would practically do since it is basically the most easiest way to lose money, however that could be the biggest trouble but not the only one.

The coins you didn't buy because of risk management could be a trouble as well, what if the coin you wanted to buy but wasn't certain suddenly makes 20%+ increase in price?

Those are missed chances and loss on profit that you never really considered before. Even Warren Buffet himself said multiple times that he wasn't really upset over the money they lost, but upset over money they could have made because risk management was overdone on them.

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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

The methods/rules to minimize risks:
1. Don't use big money to trade if you don't know how to trade with the right.
2. Select the coin, which is in the top 50 coins, so that you can analyze the moves of the coins.
3. Don't greedy to try to make a bigger profit if the situations are unpredicted.
4. Take your profit while you can, and don't wait for another bigger profit because that will not always happen.
5. Leave the market if you think the market cannot move well.
6. Don't force yourself to trade if the coin already moves to the higher price.
7. Don't forget to analyze the coins moves before you buy, and don't panic to buy or sell if the price of the coin is moved.

I think that is some of the methods that you can use to minimize the risks. I think the other members already share their method to reduce the risks, and I am sure that you already know or have your way to prevent the big risks.

Kelvinid

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It is a gonna be a big challenge but yet, can be manageable. It is only hard when we are not in control of ourselves and not knowing what exactly we are doing. Because in the first place, this is the thing we need to know before investing crypto but yet, we never thought like that as we know that it can be fine all the way to go. But it won't go so easy and the market becomes volatile which makes people get hard in dealing with the risk that comes to them.

Risk management can be of long-term work, not just of today or tomorrow but it gonna be needed all the time until we end our crypto journey. All I can say is that we need to think twice and ask help in a situation that we are undecided and really hard to decide as well.

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Quote from: Gozie51 on February 03, 2020, 11:39:57 AM

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Quote from: Wexnident on February 01, 2020, 09:18:03 AM

Do note that risk management is not a way to stop losses, but to minimize losses as much as possible. This doesn't mean that you would never take losses. There would naturally be times you would and the plan is to lessen the losses you could incur.

Yes and that's why there's no perfect strategy, possibility to get loss always there and minimize it is the answer. People will give you answer split your asset into several coin, join legit investment program or using martiangle money management. The real answer is stop loss and decide realistic target before enter the market. Accept the result and fix it " after " closing not before that.

Before stop loss, I think there is a trading pattern or strategy that is paramount to be successful. This is reducing our lot size that we want to trade with. The higher risk we take to gain is also how our accounts would be blown up if anything goes wrong. So if we take our trade gradually, we will keep accumulating profit.

Reducing the size of your portfolio is indeed one of the best way to reduce the risk of losing your money, Just focus on coins that actually have a good reputation like bitcoin, eth or xrp. Reducing your portfolio will make it easier to manage and I'm sure it will be easy to have on profit on those coins.

I have a tip for all of you guys, Buy low and buy even lower. If your trade is losing, instead of waiting you can buy on the dip, in this way you can maximize your profit if the coin started to pump.

Gozie51

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Quote from: Wexnident on February 01, 2020, 09:18:03 AM

Do note that risk management is not a way to stop losses, but to minimize losses as much as possible. This doesn't mean that you would never take losses. There would naturally be times you would and the plan is to lessen the losses you could incur.

Yes and that's why there's no perfect strategy, possibility to get loss always there and minimize it is the answer. People will give you answer split your asset into several coin, join legit investment program or using martiangle money management. The real answer is stop loss and decide realistic target before enter the market. Accept the result and fix it " after " closing not before that.

Before stop loss, I think there is a trading pattern or strategy that is paramount to be successful. This is reducing our lot size that we want to trade with. The higher risk we take to gain is also how our accounts would be blown up if anything goes wrong. So if we take our trade gradually, we will keep accumulating profit.

sana54210

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To minimize the risks, diversify your portfolio in smaller parts like 5% to 10% and only invest those amounts in any trade you want to perform. This would help you save excess loss and would also keep on giving you profits. You can even invest in variety of coins by this method because you would really save a lot of your capital in order to get your hands on maximum coins.

The more coins you buy, the more profits you might afford collecting but you need to set stop-loss for each coins because we would never know when can the price dump. Being patient and entering the markets at correct time might lead you to quickly make profits but always remember that you should never enter a market if it seems like a wrong entry point. Never check your luck at these times.

joeperry

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Well it's up to you but you can do a 1:4 ratio of risk and reward ratio (I think it's the most common) where in you will risk 1% in order to win 4% so let's say that you have bought bitcoin @$0.1 then you should sell it if it becomes $0.09 and sell it if you meet the $0.14.

You can target more profit like 1:5 or up however the safe place is the 4 but it's up to you the higher the better but keep in mind that you should jump after you lose 1% well this is according to what I've read a few months back on an online course.

Dart18

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They say the higher the risk the more profitable it could possibly be.
But I doubt that already from the start.

Minimizing risk is something that could be done with a deeper kind of digging with every coin that you will buy.
First, choose them wisely.
Don't go barging into new ones without even asking some people about it or even the management behind it.
If you choose the popular ones though, you have already cut some risk into it.
Pick the right ones only, you do not want to have a long list of different coins which you could not administer anymore.

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Quote from: Capt00 on February 02, 2020, 05:48:53 PM

Risk management can't just of simple talks and yet, it tested us when we are facing on it. May we could say it was easy to handle and manage risk but if we are in the actual scenario you can definitely say that was really really hard especially when you are deeply in trouble and can't even think the right thing to do. The only thing that I may see that could help us on how to manage risk is that we don't need to be rush, think wisely and act accordingly of what you think is right and appropriate to a certain thing. And the most important thing is that we have a concrete plan and follow it, and everything will be fine.

In reality it is not easy, risk management is what we need specially if we are trading cryptocurrencies. I do not trade without proper risk management, I already know thr consequences if we do not have it. I experienced to have huge losses because I do not consider the risk and management before. I just trading without it that makes me vulnerable to losses. I cannot turn back time and it alrrady happened but I will never forget the knowledge that I get from my past trades.

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Quote from: Capt00 on February 02, 2020, 05:48:53 PM

Risk management can't just of simple talks and yet, it tested us when we are facing on it. May we could say it was easy to handle and manage risk but if we are in the actual scenario you can definitely say that was really really hard especially when you are deeply in trouble and can't even think the right thing to do. The only thing that I may see that could help us on how to manage risk is that we don't need to be rush, think wisely and act accordingly of what you think is right and appropriate to a certain thing. And the most important thing is that we have a concrete plan and follow it, and everything will be fine.

In including into the cryptocurrency world, we are always facing the full of risk because most of the time, when we invest, we are risking our money because we cannot assure that the price of the coin will continuously be increasing. Also in trading we have a lot of risk by predicting the market price of the currency we are waging our money and the only chance of having a good income is just only fifty percent but always make sure all of we made that is related in the cryptocurrency is monitored and safe to avoid loss of profit.

Capt00

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Risk management can't just of simple talks and yet, it tested us when we are facing on it. May we could say it was easy to handle and manage risk but if we are in the actual scenario you can definitely say that was really really hard especially when you are deeply in trouble and can't even think the right thing to do. The only thing that I may see that could help us on how to manage risk is that we don't need to be rush, think wisely and act accordingly of what you think is right and appropriate to a certain thing. And the most important thing is that we have a concrete plan and follow it, and everything will be fine.

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