The only risk management in trading that I know much about is that of Patience. Many traders start the loses because of them lacking the basis of trading, which is the mindset to be patients while they trade. Basically, this is one of my secret to trade and have never disappointed me either from the beginning. Shirt and long-term trade are very much possible if traders imbibe the habit of be Patience towards their trades. No other risk management than this, that works for me through last year 2019 till date 2020.
I also want to add setting up your limitations. Trading is not like gambling so you need to prepare even for its worst. Invest only what you can afford to lose and learn to make stop loss when you think you are losing already. Trading will be more risky if you only trade without even knowing your target goal in the first place. 
Topic: Risk management , how ? - page 5. (Read 939 times)
The only risk management in trading that I know much about is that of Patience. Many traders start the loses because of them lacking the basis of trading, which is the mindset to be patients while they trade. Basically, this is one of my secret to trade and have never disappointed me either from the beginning. Shirt and long-term trade are very much possible if traders imbibe the habit of be Patience towards their trades. No other risk management than this, that works for me through last year 2019 till date 2020.
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- In Trading the risk management varies according to the person, it influences many factors, even the emotional part, but leaving all these things aside, what works in trading is the following:
- If you risk enough balance or money, your earnings may be few, but after all they are profits.
- If you start with a low balance, whatever the reason, getting profits will not be very high, but all this adds up, it is beneficial.
You can not think of getting rich overnight, many mistakes of those who begin in this world, when failures appear usually withdraw.
My way of trading is making only 3 trades, where in those 3 if I lose 2, with 1 recovery and I remain in positive balance, of course that if you lose in the 3 you must change the plan, and not lose more than 10% .
I don't agree with your first point. If you want to play safe then why 'cryptocurrencies'? Several financial experts have rated cryptocurrencies as the most risky type of investment. Investing in cryptocurrencies itself means that you have put your money on risk. Playing too safe like creating sell orders at buy price plus 1-2% or creating stop loss at -(2-3%) don't work in crypto market.
Here you have to take bigger risk to earn big and there is always the equal chance of losing money.
Is it true that people really sucks at making strategies and plans in trading? What do you think is the causes of this? Greediness? Lack of knowledge? I think the number one thing that makes them to fail in trading is that they don't seek advice first to the professionals because they have many experiences to manage risks. Risk management is very crucial when it comes to cryptocurrency so every one should be aware of that. Most especially the people who really want to reach their goals, they want to take the risk by investing their money.
Even though we get much experienced or professional but yet, risk management would be an important subject for us unless and until we are linked with cryptocurrency trading. Crypto markets are much volatile which might show us huge profits but at the same time we can even face loss in the same manner.The markets quickly move up and down which might not even give us the moment to sell of our coins at some stop loss. That's why setting a stop-loss each time your place a sell order is much necessary so that you would not have to face excess loss. You should have some backup plans in order to save your loss and quickly convert it into profits.
~snip~
- In Trading the risk management varies according to the person, it influences many factors, even the emotional part, but leaving all these things aside, what works in trading is the following:
- If you risk enough balance or money, your earnings may be few, but after all they are profits.
- If you start with a low balance, whatever the reason, getting profits will not be very high, but all this adds up, it is beneficial.
You can not think of getting rich overnight, many mistakes of those who begin in this world, when failures appear usually withdraw.
My way of trading is making only 3 trades, where in those 3 if I lose 2, with 1 recovery and I remain in positive balance, of course that if you lose in the 3 you must change the plan, and not lose more than 10% .
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
i want to know what methods/rules are there to minimise risks
Studying is the best way to lessen any risks in trading. What to study? Those market / cryptocurrency you want to enter or invest in. Although studying and researching takes a lot of time and requires huge amount of patience, it would be worth it, as knowledge is your only tool to manage risks. Other than that, experiences would lead you to your best mentality and management in trading.
I suggest take time first to study the market you are entering and how to trade well, then take trading simulations to somehow have a little experience. And then try to invest and let your experience shape you.
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
When we do talk about minimizing risk then there would be lots on the list.i want to know what methods/rules are there to minimise risks
1. Never be greedy
6. Dont be emotional.
These are only the basics but actually a hard thing to be done.
4. Set stop loss
This is the topmost and a must priority on minimizing the risk in trading. Set your ending, always have the finish line in every situation where you will stop winning or losing neither of the two. As a matter of fact setting a stop loss is really helpful especially when you don't have much spare in trading.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
When we do talk about minimizing risk then there would be lots on the list.i want to know what methods/rules are there to minimise risks
1. Never be greedy
6. Dont be emotional.
These are only the basics but actually a hard thing to be done.
4. Set stop loss
This is the topmost and a must priority on minimizing the risk in trading. Set your ending, always have the finish line in every situation where you will stop winning or losing neither of the two. As a matter of fact setting a stop loss is really helpful especially when you don't have much spare in trading. 
Basically, risk management is more for controlling yourself like keeping emotions, with you can control emotions so you will not panic and get greedy in trading. That way you will trade even better when facing prices that suddenly decline and suddenly increase, there is no need to make choices based solely on rumors because of the possibility of the market moving in the opposite direction.
What about planning and making strategies? If you know how to execute your plans properly then you have the urge to minimize your loss because of an error. Before you make a plan, you will have a plan B so that if the first plan fails, you have the second one. Also self-discipline is essential in this cases, proper management of accounts and portfolio will help you to get an idea about the next thing to do during trades. Always observe the price movement in the market and that will be the bases on your next transactions.
Is it true that people really sucks at making strategies and plans in trading? What do you think is the causes of this? Greediness? Lack of knowledge? I think the number one thing that makes them to fail in trading is that they don't seek advice first to the professionals because they have many experiences to manage risks. Risk management is very crucial when it comes to cryptocurrency so every one should be aware of that. Most especially the people who really want to reach their goals, they want to take the risk by investing their money.
Basically, risk management is more for controlling yourself like keeping emotions, with you can control emotions so you will not panic and get greedy in trading. That way you will trade even better when facing prices that suddenly decline and suddenly increase, there is no need to make choices based solely on rumors because of the possibility of the market moving in the opposite direction.
What about planning and making strategies? If you know how to execute your plans properly then you have the urge to minimize your loss because of an error. Before you make a plan, you will have a plan B so that if the first plan fails, you have the second one. Also self-discipline is essential in this cases, proper management of accounts and portfolio will help you to get an idea about the next thing to do during trades. Always observe the price movement in the market and that will be the bases on your next transactions.
It is about your risk appetite and also about how will you handle a certain risk. We should be aware that cryptocurrencies are risky investment and risk and management is important in order to minimize the risks that we can take if we invest our money. Many traders are just keep buying and selling without proper risk and management and it is a big problem because they cannot handle it very well that can lead to major losses.
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First thing you need divided your portfolio to different coins, means don't put your money in one basket. I will suggest at least trade with 4/5 coins (according to total portfolio). So even a coin start dump then you will not loss much.
I won't recommend this suggestion since it has to do with diversifying your investment which from previous studies has shown it's not the best form of risk management. Sure when the market condition is favourable, you're likely to make more profit but once the market becomes unfavorable, the rate at which you'll loss increases since all altcoins are related in regards to price movement of the market.
In risk management, making use of advance trading tools are the most effective way to my understanding in minimizing losses since the system will be automated meaning you won't have be active to make trades. Money management is also another factor which shouldn't be ignored since the market is a very emotional one which can lead you to investing more than you can handle. One of the precautions a trader should always make is, never invest (trading vcapital) more than he/she can handle in case of a bad trade as this helps the trader to stay calm and not panic.
First thing you need divided your portfolio to different coins, means don't put your money in one basket. I will suggest at least trade with 4/5 coins (according to total portfolio). So even a coin start dump then you will not loss much.
Second thing use stop loss, if a coin start dump after you bought then sell in maximum 5% loss. Then wait for more down, and when you think should re enter then buy again. By this way you can increse your portfolio. Although its quite risky but no any other way if start dumping your bought coins.
Patience is most important on the trading. Besides greed is most dangerous as well. So you have to care about patience and greed. If you have good profits then just sell, its not necessary to wait for more gain. Who know if coin start dumping. So something is better than nothing.
Second thing use stop loss, if a coin start dump after you bought then sell in maximum 5% loss. Then wait for more down, and when you think should re enter then buy again. By this way you can increse your portfolio. Although its quite risky but no any other way if start dumping your bought coins.
Patience is most important on the trading. Besides greed is most dangerous as well. So you have to care about patience and greed. If you have good profits then just sell, its not necessary to wait for more gain. Who know if coin start dumping. So something is better than nothing.
~snip~
When we do talk about minimizing risk then there would be lots on the list.1. Never be greedy
2. Set a specific goal/profit on a certain trade.
3. Dont chase losses
4. Set stop loss
5. Dont get fomo'ed or shilled out.
6. Dont be emotional.
These are only the basics but actually a hard thing to be done.
Indeed very basic guidelines, but It's actually harder than you though it would be.
Greed has always been chasing before us, It's unavoidable not to be tempted by greed, specially we're dealing with money here. That's where the greed starts.
Not chasing losses and setting stop loss is somehow a character than can be easily obtained by any experienced traders. While, FOMOing is inevitable too when greed takes over you, and not only those traders with low experience could be fomoing but also the very experienced ones.
Emotion is always there, as human being, that can't be avoidable.
Sure this would really help to manage the level of risk and pressure, but then again, it's really hard to contain.
Best case of risk management would be basically preparing yourself for any movement at all, if you think bitcoin might fall you should do stop loss in order to stop from losing basically, the name gives away what it does, that way if you think bitcoin fall under certain support level and it may go even lower after that, you can put a stop loss right under the support level so if it ever reaches under that you will sell and when it goes even lower you will buy more.
You can do exactly the opposite on the other side as well, meaning if you think price will continue to go up after breaking the resistance, you will have a buy order there and as soon as it goes above that price you will buy and sell when it reaches the next resistance level, that is how it works for risk management.
You can do exactly the opposite on the other side as well, meaning if you think price will continue to go up after breaking the resistance, you will have a buy order there and as soon as it goes above that price you will buy and sell when it reaches the next resistance level, that is how it works for risk management.
Basically, risk management is more for controlling yourself like keeping emotions, with you can control emotions so you will not panic and get greedy in trading. That way you will trade even better when facing prices that suddenly decline and suddenly increase, there is no need to make choices based solely on rumors because of the possibility of the market moving in the opposite direction.
I agree with you that most of the time risk management is more on controlling yourself than following what the other says because in the first place you are the ones who is controlling the outcome of your choices. The more you get an experiences from your past the more you will know how to become a trader or to manage the risk of every investment you've made.
Risk management always is a tough deal because we always feel to just go for little bit extra risk and that often turns out wrong. So for me the biggest advantage is FreshForex broker. Since through them there is 101% Tradable Deposit Bonus and that enables great working for me.
Basically, risk management is more for controlling yourself like keeping emotions, with you can control emotions so you will not panic and get greedy in trading. That way you will trade even better when facing prices that suddenly decline and suddenly increase, there is no need to make choices based solely on rumors because of the possibility of the market moving in the opposite direction.
Always diversify your investment and never get greedy in times when you are doing good.
This isn't the stock market. In the stock market you can choose between various industries and invest in real companies.
In crypto you can choose between Bitcoin and a ton of shitcoins. I wouldn't recommend anyone to buy shitcoins unless you accept that there is a very real possibility that you lose most of your money. If you purely focus on the charts, then it's clear that apart from a few newer coins, Bitcoin throughout the years has done better than the rest of the crypto market.
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I have zero risk management when it comes to my hodl stack, but have strict risk management for my speculation stack. I set myself target levels as to where I want to be out of the market, and this usually works pretty well for me. If needed, I'm happy to take a small loss in order to prevent further losses.
Furthermore I closely monitor the daily moving averages and enter/exit positions based on what I deem a change of behavior. My current position is well in the profit, but will exit the moment the price has closed or is about to close below the 21EMA. In this case I do not have a target level in mind to cash out at. I'll ride this run out as long as possible.
First of all you have to be aware of your limits. Whatever you do, don't invest more than you can affor to lose. Always diversify your investment and never get greedy in times when you are doing good.
Don't ever treat trading as a gambling and don't rely on pure luck, that is a trap. And always be aware that you can't predict every situation and that surprises, especialy negative ones, are always possible.
Don't ever treat trading as a gambling and don't rely on pure luck, that is a trap. And always be aware that you can't predict every situation and that surprises, especialy negative ones, are always possible.
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