Topic: Why risk management is so important ? - page 3. (Read 1414 times)
Look at how noobs suffered a big loss at their entry, that probably because they underestimate the risk in here. It was to accept that learning for mistakes is a thing that could help us to grow and to find which area we've been fails. If we are aware of what we do as a trader, we can find it that most mistakes are coming from the wrong decision. But if we know how to manage the risk in trading, it eventually enhances our decision making. This thing we need to master with.
Indeed risk management is important for every traders because thats how you can control yourself for further losses. Having a plan, strategy and patience are required in order to do it right because if you have no plan and unable to manage the risk of trading you might lose your capital or worse lose the chance to recover it. Its not easy to be a trader and to earn as well however we can maximize our chance to gain by following our plan and ot greedy to earn quick.
without that, I doubt they would trade without seeing the risk. honestly this is one of the factors that make many traders stop. however, risk management is very necessary. consideration of the risks that can be surmounted will make us better prepared, and confident with the decisions we can take.I usually divide the appropriate capital for each of my investments and never spend all my money on buying a coin because the risk is very high. Sometimes I still lose money because of the market volatility. However, after all, I still make a profit again because I always have a second plan when the market suddenly collapses.
It will be bad decision for anyone if they put all there money in the single assets especially if we talk about cryptocurrency since there are series of events where alts get dump by their own devs so if the the person put all his money in this kind of things then he will lose everything, but if they put on several altcoins exist they will have a high chance to recover back if they lose the other holdings.
Would depend on the financial capacity of a certain individual because not all would really have that kind of capability on doing multiple investments
since they do only have sufficient funds for only a few or even a single project that they do tend to invest on.So its really hard to make conclusions that
people do only have single investment doesn't consider out to have lots.Of course those things are in minds but they don't have any choice since they
don't already have money to spent.
There is a saying, "No risk, no gain". That means, where there has a gain, there has a risk of loss. So, risk management is very much important for any trade. But risk management is not so easy. A vast of knowledge is required for analyzing the different variables. Vary few traders engage in trade without knowing such risk management. To be a successful trader, beside risk management, a person should have the ability to analyze different trends of market, gather experience and study the past and present behaviour of market etc
Risk without nothing in this crypto world so it's doesn't matter to me because it's simply combination when i makes small profits. Afterall i hope one day i want take chance a smart trader then risk will less to me. Especially trading means not profits everyday so i will be happy for trading with loss/gain anyone.
Indeed risk management is important for every traders because thats how you can control yourself for further losses. Having a plan, strategy and patience are required in order to do it right because if you have no plan and unable to manage the risk of trading you might lose your capital or worse lose the chance to recover it. Its not easy to be a trader and to earn as well however we can maximize our chance to gain by following our plan and ot greedy to earn quick.
without that, I doubt they would trade without seeing the risk. honestly this is one of the factors that make many traders stop. however, risk management is very necessary. consideration of the risks that can be surmounted will make us better prepared, and confident with the decisions we can take.I usually divide the appropriate capital for each of my investments and never spend all my money on buying a coin because the risk is very high. Sometimes I still lose money because of the market volatility. However, after all, I still make a profit again because I always have a second plan when the market suddenly collapses.
It will be bad decision for anyone if they put all there money in the single assets especially if we talk about cryptocurrency since there are series of events where alts get dump by their own devs so if the the person put all his money in this kind of things then he will lose everything, but if they put on several altcoins exist they will have a high chance to recover back if they lose the other holdings.
Risk is everything in this world and in crypto talking about risk it is at a very high level. If the risk-reward ratio is not favourable, then trading or investing will make no sense as it will only end up losing the money and that too quickly as crypto is highly volatile. We need to measure our steps and ensure that we can mitigate risk as much as possible and take the corrective step in order to gain.
Indeed risk management is important for every traders because thats how you can control yourself for further losses. Having a plan, strategy and patience are required in order to do it right because if you have no plan and unable to manage the risk of trading you might lose your capital or worse lose the chance to recover it. Its not easy to be a trader and to earn as well however we can maximize our chance to gain by following our plan and ot greedy to earn quick.
without that, I doubt they would trade without seeing the risk. honestly this is one of the factors that make many traders stop. however, risk management is very necessary. consideration of the risks that can be surmounted will make us better prepared, and confident with the decisions we can take.I usually divide the appropriate capital for each of my investments and never spend all my money on buying a coin because the risk is very high. Sometimes I still lose money because of the market volatility. However, after all, I still make a profit again because I always have a second plan when the market suddenly collapses.
Indeed risk management is important for every traders because thats how you can control yourself for further losses. Having a plan, strategy and patience are required in order to do it right because if you have no plan and unable to manage the risk of trading you might lose your capital or worse lose the chance to recover it. Its not easy to be a trader and to earn as well however we can maximize our chance to gain by following our plan and ot greedy to earn quick.
without that, I doubt they would trade without seeing the risk. honestly this is one of the factors that make many traders stop. however, risk management is very necessary. consideration of the risks that can be surmounted will make us better prepared, and confident with the decisions we can take. 
Indeed risk management is important for every traders because thats how you can control yourself for further losses. Having a plan, strategy and patience are required in order to do it right because if you have no plan and unable to manage the risk of trading you might lose your capital or worse lose the chance to recover it. Its not easy to be a trader and to earn as well however we can maximize our chance to gain by following our plan and ot greedy to earn quick.
In any investment, there must be a backup plan because the crypto market is often very easy to manipulate, and if not careful you will face a lot of big risks. In the past, I made many mistakes and lost a lot of money when choosing to invest, but now everything is better because I always learn from those failures. One way or another, you should not be greedy and always manage your assets in the best way.
Most people over here mainly loses everything because of poor risk management. Risk/Reward ratio is one of the way to evaluate if the risk is worth taking based on the reward, but this is just a part of the the risk management (evaluation). You could probably add other necessary steps required in risk management.
I guess pre-evaluation alone more than enough to avoid losses. Because when a trade is not good as per your own criteria for risk/reward ration then you may skip it. But usually traders not doing that but they do deliberately trade each and every call without pre-accessing the risk/reward things. When you are selective as per your pre-determined things then you can trade what suits the most as you will not be wasting your time with noises.I guess only traders who bother about preventing losses may able to follow these kinds of management principles more consciously. But I am a trader who forgets all my own discipline rules and may think about my own set of rules only when my trade turns negative.
Before continuing your trading, you must focus on developing self-discipline and emotion control so that you can get back into the tracks of becoming professional trader because even after lots of trade if you are not working on fixing your spotted weakness then there will be no possibility of achieving the level of pro trader. This meme could explain the scenario more better:
I like the idea OP but whats wrong are the application of traders. Some cant help themselve to stop trailing profits resulting to more loses. As a trader risk and discipline are both should work on your part. If you gain enough target already reserved other funds for another schedule cause doing more trades than your normal routine could lead somewhere you dont anticipate happening.
I also trying out to document my trades to help me determine my PNL for all the activities I did. I think this is also a good suggestion for others to know if your experience on trading is improving a lot or not.
I also trying out to document my trades to help me determine my PNL for all the activities I did. I think this is also a good suggestion for others to know if your experience on trading is improving a lot or not.
Indeed risk management is important for every traders because thats how you can control yourself for further losses. Having a plan, strategy and patience are required in order to do it right because if you have no plan and unable to manage the risk of trading you might lose your capital or worse lose the chance to recover it. Its not easy to be a trader and to earn as well however we can maximize our chance to gain by following our plan and ot greedy to earn quick.
Risk management is actually quite important when it involves investment (gambling, trading and anything related to financial transaction). Most people over here mainly loses everything because of poor risk management. Risk/Reward ratio is one of the way to evaluate if the risk is worth taking based on the reward, but this is just a part of the the risk management (evaluation). You could probably add other necessary steps required in risk management.
A high risk portfolio has the chance of making a higher return. So it dynamic thing to keep weighing out assets based on cost benefit ratios thus not everyone's cup of tea, better done by fund managers.
But I believe, anyone can learn those tricks by experience rather than simply studying on books or on materials. I agree the criteria we do set on risk management is not always the same thing but we can simply it by approaching in percentage ratio, for example. I mean all big things are having some short-cuts to make it easier to understand or applicable up to our needed level 
.Remember, when you have intention to gain money through trading or wherever its place something that you should know first is understanding/knowledge. You will be fooled if you don't have a knowledge but you have a high expectation.
Yes, this is all that we do call as risk management. Your expectation should be ONLY on profits but on losses as well. When you have plans about how to manage/afford the losses then you can easily manage and cope up the frustrating losing moments which will help you start focusing one making profits on next opportunity. Yes, risk management will help you to pre-evaluate your potential losses and will help you to plan accordingly.
We knoe that risk management is the process of identifying possible risks, problems or disasters before they happen. This allows business owners to set up procedures to avoid the risk, minimize its impact at the very least help cope with its impact. The crypto market risk management is important at the company level because most companies are exposed to many financial factors and conditions, such as interest rates on short, medium and long-term credit instruments and interest rates and duration of trade payable and receivable for any mission.
It is so difficult to recover lost capital from losses, profits will not always be greater than losses.
Really so you mean this? Why do people keep on trading then if profit will not always be greater than losses. Hey... People are making more profit than losses, you have to learn better ways to make better profit.Trading is depend on your knowledge and on your analysis, you will get profit when you know both of them and you will get lose every time you trade if you don't have both of them.
Remember, when you have intention to gain money through trading or wherever its place something that you should know first is understanding/knowledge. You will be fooled if you don't have a knowledge but you have a high expectation.
Having less loss and having quick profits is basically the method to do it. I had a friend who basically had a system where he had a big bankroll to himself and all he did was keep buying whenever price went down 5% and as soon as he made 5% profit he sold.
So in his mind, if he buys at 100 dollars, he buys more at 95, and more at 90 and more at 85 basically no matter how much it falls, and he sold as soon as whatever the purchase average was 5%+ of that price. That is really not the most perfect method but that was the best risk management I have ever seen. I do not really think there are any better methods than this, it helped that dude to be in profit almost all the time, and never seen him lose too much money neither, sure lost a bit but never too much.
So in his mind, if he buys at 100 dollars, he buys more at 95, and more at 90 and more at 85 basically no matter how much it falls, and he sold as soon as whatever the purchase average was 5%+ of that price. That is really not the most perfect method but that was the best risk management I have ever seen. I do not really think there are any better methods than this, it helped that dude to be in profit almost all the time, and never seen him lose too much money neither, sure lost a bit but never too much.
It's very important that you know how to asses the risk and that you are aware what potential loss you can take. Otherwise you might find yourself in troubled situation and generate too much losses that you can't handle.
Yes, risk management is all about pre-calculating about how much losses a trader may able to afford on unexpected events. Experts usually coin this as "calculated risk". When the traders who are not bothering about how much losses they may face with respect to available capital and how long it may take to recover the losses if happens, then they may not able to sustain in trading over the long run.Unfortunately, not all traders are aware the risk enough or they simply ignore it thinking they will be lucky enough.
But luck doesn't have anything to do with risk and you can't make profit all the time.
If you notice, people are mostly luckier to escape but they may get trapped one day or other. Unfortunately people are learning about risk management only after facing some disaster. It means they start thinking about risk management and start giving importance to it only after gaining considerable experience. But luck doesn't have anything to do with risk and you can't make profit all the time.
Risk management applies to each job Investing without risk isn't possible this is often why investing during a site requires trust and work to avoid risks Crypto market investing is typically not later in gambling. there's a fear of losing more in gambling If we invest in cryptocurrencies then long-term investments are less risky If the worth goes up it's possible to form tons of profit Therefore, to avoid risk you've got to make a decision about where to take a position and wait until the worth rises.
It is so difficult to recover lost capital from losses, profits will not always be greater than losses.
Really so you mean this? Why do people keep on trading then if profit will not always be greater than losses. Hey... People are making more profit than losses, you have to learn better ways to make better profit.
Quote
you have to learn better ways to make better profit.
There's no better way than to study trading
If you really want to be a profiting trader, you should manage your risk and apply all knowledge needed. 
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