Topic: Risk management , how ? - page 6. (Read 939 times)

Well, every one of us has a technique and ideas about how to manage the risk. To be specific, we should have self-discipline in trading because it is a sort of gambling that perhaps you have to lose or win. The most important is to spend an amount that you can afford and that included not to become greedy at all. Next is, accept losses and never chase it and hoping to cover your entire losses because it will probably end up nothing if you continue doing that. Another one is stopping loss and take profit, diversification into stable coin is the best way to cut the losses. Indeed, research your own and dont rely upon other's suggestions.

Perhaps, you don't have to be greedy in taking profit so you can minimize the risk of losing the profit because we don't know if the price will increase more than the price now. It is better to close the trade by getting the profit while we still see it before the price goes down because after the price hits the higher price, it will go down, and sometimes, the price can get dump too deep. So before the situations change, we can use that time to sell the coins and wait for another time to repurchase the coin if the coin has the potential to increase back.

As you can see OP from all answers above, risk management is a hard thing to explain and to be honest with you, all these answers are good and could be seen as a risk management for different, let's call it "earning strategies" - trading, investing in ICO, gold, etc.

Risk management - (in my opinion) word to describe actions taken against losses.

As you said OP,


you have read about it and now wonder, what that is and how to apply it to your trading to be profitable?

Already one member answered, that you shouldn't be doing this, which is: "read to much BS on the internet".


This is really great advice because you can't apply risk management strategies from an article (written by a billion-dollar hedge fund manager) to your trading, this is something totally different, but as you can see, it has the same name.

The first and third answer, both good for every day trader (especially the third one),


OP, you can apply this to your trading to minimize risk and this would be good risk management, I hope this starts to slowly be clear?

If not, I will share what I personally do lately, to manage my risks in trading. I started to use, these new Binance pairs BULL, BEAR, ETHBULL & ETHBEAR when I try my luck with day trades or even swing trading. I try to hedge against (not so much) the risk itself, but the market volatility, especially, when on BTC and there could be FOMO in play (big news or event).

If you don't know what BULL, BEAR, ETHBULL & ETHBEAR is, here a short read: https://www.binance.com/en/support/articles/360038933471

As I already mentioned, when I am day trading and there is a big chance for the price of BTC to go up or down fast, I like to bet 15% on BULL or BEAR to hedge against the risks and market volatility, when I am gambling with more money than usual.

As you can see, everybody has to develop his own risk management strategy, which will be perfectly suited to what one is actually doing. I needed also a lot of time to understand it and be able to implement it to my trading and now I concentrate on how to maximize profits because everything is in our minds and if you will keep thinking about risk and losses, it could end up that way, despite best risk management strategy  .

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.

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.

Some tips with Risk management is to always be alert regarding the changes in the market. Learn to determine whether a sudden pump is good news or bad news for you. There's also the idea of spreading thin your portfolio, so even if you do lose in every avenue, the losses are minimized since its pretty much distributed, compared to concentrating on one coin. The vice versa could be done as well, BUT you must be able to determine that the coin you would invest in would profit.

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

Risk comes from the volatile altcoins that people become enthusiastic about and move on to those from bitcoin. They forget that bitcoin is what is going to be the biggest coin in the future and fall for the false promises of some shitcoin. So reduce your portfolio and keep bitcoin to the maximum if not 100%.

2. Move to other sectors that just cryptocurrencies. But this depends on your expertise. This helps mainly during the times when crypto is dumping and other market are rising.

3. The internet is full of paid media articles. Stop reading them and the reddit channels on crypto. Its more like breeding grounds for waste of time conspiracies there. Use your own research to develop your own charts and use them to buy/sell and observe how you progress.

Remember that trading is not everyone's ballgame. You may fail at which point it is wise to quit.

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