Risk management is very important in trading and you need to have discipline to be able to follow the proper risk management, this is what most traders dont have. One of my best attribute as a trader is being disciplined because i never over leverage.
The general rule in trading is never risk more than 1-3% of your trading account which is the best thing.
If i have an 100$ account that means i am just risking 3$ to make about 6$ depending on how many pips i am willing to take from the market
Topic: Why risk management is so important ? - page 2. (Read 1473 times)
why is important for me because it will prevent me from big loss , i just thinking about it again before making some decisions and count how much risk that i put on something
Risk management is most important thing in trading because every trader only keep on their mind about how much profit will got and not care about chance to lost with their trading, we must ready with risk management like cut lost when getting assets trading is little chance to get profit and we must take other chance with other coin have bigger chance for profitable.
In trading, I always set a stop loss after buying and certainly will never be greedy when that coin goes up. I have a clear original strategy and will sell when I have made enough profit according to my strategy. Of course, sometimes these coins usually go up higher, but I do not regret, because investment opportunities are always available to me in this market. hero member
Activity: 2912
Merit: 541
Leading Crypto Sports Betting & Casino Platform
I once had a friend who lost over $20,000 back when Crypto money was too much for him to even understand what he was doing. Risk management is the number step one has to make before investing so Much in a business.
If your friend knows what he needs to do before he invests in crypto, I am sure he will make a lot of profit because he uses big money to invest. Risk management will be there, but we can minimize the risk by analyzing before we invest, so we know what step we need to do. Besides that, we need to know the amount of money that we should use to invest so if something wrong happens, we can use the other strategy to prevent another loss.
Risk management is most important thing in trading because every trader only keep on their mind about how much profit will got and not care about chance to lost with their trading, we must ready with risk management like cut lost when getting assets trading is little chance to get profit and we must take other chance with other coin have bigger chance for profitable.
I once had a friend who lost over $20,000 back when Crypto money was too much for him to even understand what he was doing. Risk management is the number step one has to make before investing so Much in a business.
Managing risk is not always easy because you must always be careful before any investment. In investing, this step is very important, and even professional investors can lose money when participating. Before investing, you need to have a specific plan and always think many times before buying because if not careful, you will be the next victim of the crypto market.
I once had a friend who lost over $20,000 back when Crypto money was too much for him to even understand what he was doing. Risk management is the number step one has to make before investing so Much in a business.
It is very important to be disciplined,to master self-control,and to avoid being greedy...Risk managment is not easy to master,you have to be patient and wait for the best time to enter a trade
Risk management is really important as it helps cut down losses. It can also help protect a trader's account from losing all of his or her money. The risk occurs when the trader suffers a loss. After all, a trader who has generated substantial profits can lose it all in just one or two bad trades without a proper risk management strategy.
Of course risk management is the first thing that makes a trader perfect. Without having it, a trader can loss all his fund in treading. So Its impossible being a perfect trader without having this skill. But without risk, it's not possible to become successful in life
Right, we need both skill/knowledge and risk management in order to be a successful trader, also for staying/surviving in the field of any assets trading whatever it's cryptocurrency or forex or stock tradings. Especially, risk management is the key factor of trading like FA and TA. Frome my experience, I lost some funds in margin trading because of not using the stop-loss tool or risk management at the beginnings. But I fully aware of this and recover my previous losses by using the risk management and also making profit by taking risks. Trading on the live exchange is actually harder than how written contents usually convey it but you are right about one thing though, taking calculated risk is the key to success in any volatile market because the wave and charts can go against you any moment no matter how pro of a trader you seems to be.
Because crypto trading in real life is somewhat different. It was very hard to manage ourselves when we have a little patient and knowledge in trading and quite to see that some traders are quitting and leave because they don't really understand the situation.It is just unfortunate that most trader don't yield to the warning of trading what you can afford to lose or a spare cash
And then, it was an unfortunate thing that they couldn't even manage to take the risk and handle the stress they actually live. That even you are an expert and pro traders, you can't simply think that trading we work so easily, yet it was a stressful job especially when the market turns into bearish.
Trading on the live exchange is actually harder than how written contents usually convey it but you are right about one thing though, taking calculated risk is the key to success in any volatile market because the wave and charts can go against you any moment no matter how pro of a trader you seems to be. It is just unfortunate that most trader don't yield to the warning of trading what you can afford to lose or a spare cash
Risk management is very important. An investor cannot become successful unless he or she uses risk management properly. From my own experience, I have not seen the face of profit until I have followed risk management, but since I have been following it, Since then I have been able to calculate the profit and loss of monthly trading and bring out the monthly profit.
It's right. Risk management is critical for trading. Besides the knowledge about the market, you also have to learn how to manage the risk. Sometime you'll need to accept the risk if the chance of creating profit is large enough. The more profits, the more risks that you have to face. In a new-born market such as cryptocurrency market, there are a lot of risks. Therefore, without doing risk management, traders have a great risk of losing their money for nothing. Risk management is critically needed not only on crypto but in any investment because this would be your weapon to be profitable no matter what kind of investment you are into.You should know on what you gonna do in terms of risk:reward thing because if not then you would just basically doing gambling at all.Some investors do choose to play much safer or less risk and just accept a few amount of profits and some do really choose up to have bigger risk to gain more.Its just a matter of choice and this will vary out also on how knowledgeable you are into this field.
Could it be because if you do not manage the risk you will end up in bigger trouble than you anticipated in a move that you didn't suspected? You could do a trade or anything that could potentially be riskier than you know and because you didn't do your risk management you end up losing a lot more than you imagined for it. People who make sudden trades that pops up in their heads are the biggest examples of it.
There are tons of people who see a coin going up, they jump the bandwagon but while they are doing it, all those withdraws/deposits trades and so forth takes half an hour or even over an hour and by the time the money is there, the move stops and they end up with nothing in their hands, even lose money when it starts to go down and they didn't sell it before the drop starts.
There are tons of people who see a coin going up, they jump the bandwagon but while they are doing it, all those withdraws/deposits trades and so forth takes half an hour or even over an hour and by the time the money is there, the move stops and they end up with nothing in their hands, even lose money when it starts to go down and they didn't sell it before the drop starts.
Risk management is very important. An investor cannot become successful unless he or she uses risk management properly. From my own experience, I have not seen the face of profit until I have followed risk management, but since I have been following it, Since then I have been able to calculate the profit and loss of monthly trading and bring out the monthly profit.
It's right. Risk management is critical for trading. Besides the knowledge about the market, you also have to learn how to manage the risk. Sometime you'll need to accept the risk if the chance of creating profit is large enough. The more profits, the more risks that you have to face. In a new-born market such as cryptocurrency market, there are a lot of risks. Therefore, without doing risk management, traders have a great risk of losing their money for nothing.
Of course risk management is the first thing that makes a trader perfect. Without having it, a trader can loss all his fund in treading. So Its impossible being a perfect trader without having this skill. But without risk, it's not possible to become successful in life
I agree with you...
Aside the fact that every trader should trade with what he/she can afford to lose, proper risk management is very paramount to having a profitable trading. Reducing mistakes to the bearest minimum should be the utmost priority of every trader as a single lose can cause a huge loss that might results in portfolio burn. Every trader ought to get acquainted with various risk management strategies and to be help them avoid minor or unnecessary risk mistakes
Aside the fact that every trader should trade with what he/she can afford to lose, proper risk management is very paramount to having a profitable trading. Reducing mistakes to the bearest minimum should be the utmost priority of every trader as a single lose can cause a huge loss that might results in portfolio burn. Every trader ought to get acquainted with various risk management strategies and to be help them avoid minor or unnecessary risk mistakes
Risk management is very important. An investor cannot become successful unless he or she uses risk management properly. From my own experience, I have not seen the face of profit until I have followed risk management, but since I have been following it, Since then I have been able to calculate the profit and loss of monthly trading and bring out the monthly profit.
That's right, not only capital management, but also trading strategy. Two people open the same order with the same capital ratio but the result will be completely different from each other. because each person has their own trading strategy and has its own RR ratio. It's best to use the best 1: 3 RR ratio, which is that when you lose, you lose only 1, but when you win, you will have 3. That's quite a great strategy that I'm using, It applies quite well to the forex.
Risk management is what we should focus especially if we want to be consistently earning in the market. Risk management consists of different areas that we should master: first is planning, second is identifying the risk and reward ratio, third is position sizing which is the very important in order to manage the risks very well. Traders are usually focusing on the money that they may earn and not the money that they may lose and that is why when they all in their money in just one trade, they suffer huge losses that takes time in order for them to recover it.
Everyone who engage in cryptocurrency experiences risks and it never go away. We need to accept the fact that risks are always there if there's a money involved, especially in trading, no one is safe when we say there is a risk. It takes courage for you to become confident on what you are manipulating, risk management is the key for us to minimize the probability of losing money and the amount that we are losing.
It is essential for us to become prepared whenever we trade, it is important that we have strategies, we are ready, and we know what to do before we do some transactions. We all want to grow our money that's why as much as possible, always apply risk management in your trading so that you can win in the market consistently.
You should know how to plan, make strategies, become flexible and practice good decision making in order to become a better and effective trader. Don't be scared to fail because if there is failure, there is a lesson that you can obtain.
Jump to: