Topic: Why risk management is so important for Every Trader. - page 10. (Read 1544 times)

It couldn't just be done at once or two but make this a habit and continue doing this until the day we stop trading.

Risk management can be more appreciative when we are in hard times and we think deeply to find the solution for our losses and mishandled funds. We can see its vital role in our trading life as we are battling to win our emotions. If to find that we are not good at this, I'm not sure but possibly we are very near to losing ends. Yeah, we probably have a miserable life in trading.

Risk management is a very important thing. Because if you did not manage your risk , it means that your account is in risk. A professional trader must manage their risk with trading. A trader have to place a stop-loss when he takes a trade.

I am pretty sure that the 1st year is going to be the crucial part because that is where you develop your risk management, also congratulations to you for reaching the point in trading where you can rest easy even though you are trading.

You mean if we are good at risk management then we can sleep peacefully? Or else, we always need to think about market fluctuations? Yes, you are right.

Risk management is something that will ensure that we will not be losing all our capital even under occurrence of sudden market volatility. It will be possible when we are not greedy and when we are ready to accept losses rather than giving our emotions more priority. Traders must always work on effective risk management according to their trading habits; if they are not good at risk management then it is highly recommended to become investors rather than being non-profitable traders.

After 4 years of trading in the cryptocurrency market, I can definitely say that without competent risk management, you will not chew in the long term. In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

Social media is their only basis and that why newbies are being trapped on top because they didn't analyze the market and they have no risk management at all, they are just keep taking risk without any assessment of the possible outcome. Crypto trading is very risky, we must have the proper knowledge about trading, always have a target price and cut loss price so by this you can manage the risk that you can take, and you can get out of the market before it dump again. Newbies are the common victim of this, they are losing money at an instant.

^ The only reason why newbies or beginners are being trapped becoming traders who FOMO, impulsive trading, and selling loss is because of the people who consider trading as gambling, and they are very much influential most of the time and they can influence the news that trading works that way. If you are gonna browse, you see successful traders wanna be with the pictures of their trading platform on their old laptop, looking fancy and professional. But in reality, they don’t learn from others. They are very much egoistic and just wanted to look cool and smart and the cycle keeps on rolling.

That is right. Cryptocurrency is very volatile which is why this is a very risky investment. Risk Management is the key. In short-term trading, Please be mindful in putting stop loss to avoid getting wrecked. This practice was not followed by many, mostly newbies. Cut loss if necessary when things didn’t go as predicted, then find a good entry.

risk reward ratio is very important as a trader, this is one of the things that will you to have an hedge over the market for capital preservation. you dint need to work on how to always win but how win big whenever you win and minimize your loses. doing this will help you manage your risk, save your capital and make decent even if you lose some trades.

Risk management is very important, but what is more important is whether you can do it or not. Basic also needs to be emphasized to beginners in trading. Because there are still many who start trading without knowing how the risks they will face later, because for beginners who are still early trading, they usually only think about the benefits that will be obtained, without realizing the risk is much higher than that, if we don't know how how to manage it well.

In fact, this will traumatize beginners from the losses they will find when they jump right into the real trade and make them mentally exhausted. Their view of crypto trading will be bad, because all they get is a loss, unlike what they imagine, being a trader is difficult to do, if all we want and think about is profit. That is the wrong mindset, if from trading we will get profit continuously. Everything must have its own risks, it is not easy to be able to earn for beginners who are just getting into trading. It is necessary, prior understanding of the knowledge to trade and then you can try it.

You learn about risk management after you understand how to trade. That will really help you in trading later. Because from here almost everything will be taken into account and in the future what you have to do, what actions you have to take must all be determined before something like an increase or decrease in prices occurs. Risk management is also useful for you to anticipate large losses. For example, by placing a stop loss after you predict and consider how far the price will decline. Therefore, do not assume that the decline in prices is a natural thing, it could be that after the decline there will be no more increases. So you need to think carefully about this.

Risk management is really important for every trader since we are dealing and working into a market that is highly volatile and we do know that risks are associated upon working into it. Practicing how to manage certain risk will help you out as a trader to make your losses to be lessen and not to be dragged down even further. Being able to deal and work on managing risk will make things somewhat favorable to you because if you will keep on banging against risks and putting too much effort recovering your losses, you might just end up having nothing in the end. You can just be able to survive in trading if you do know how to properly manage your capital and deal with the risks to cut down possibility of greater losses so you can still have something to start with and will not end up empty handed.

It is classic. Not only about this, but also about your capital. Traders or investors will be killed if they don't have any capital left in hands.

• Protect your capital must be your priority. You can close your position with a draw and a small deduction from trading fee. Sometimes, it is your success, not failure.
• If you win big, you will have two components in your account balance: Initial capital + Big profit. Let's take do the followings
  
  • Take your initial capital out of your account
  • Protect it carefully and don't use it if you don't lose all the big profit in your account.
  • If you lose all your Big Profit, don't use your initial capital to trade or invest immediately. Spend few days or even weeks to think of your mistakes, learn from losses to improve yourself
• In crypto market, it is not hard to get big profit, the difficult part is how to keep your profit, then your capital

Yes, its risky but if you do know on what youre doing then you can really make out big returns out of your investment and its a bit needing a mix of luck if i were to say.

Before you do make out investment then be sure that you are aware of the risk and only invest on the amount that you can afford to lose.Dont make your hopes that high because

this isnt something that talks about easy money but rather still needing proper analysis and good decision making for you to make out some profits.

Risk management is at the top of trading. It includes decision-making, market analysis, technical analysis, and fund management. A failure to any one of them affects the result of our trades. That is how very important is that and mostly we can see traders especially newcomers suffer such losses and bad entry as they don't know what they are doing. They don't know what they should have to do.

That is why we can't just say that trading is easy, we can really say it has a process that we need to follow in order to succeed otherwise, failures come next to us.

The most important thing in any strategy is not to lose your money. If you learn not to lose your money, you will definitely become a successful trader. Together with your experience and knowledge, you will develop a strategy for yourself that will allow you to achieve a positive balance when the profit will exceed the losses received.

With the little experience am having before you start trading the first thing you should learn about is risk management. When it comes to cryptocurrency you definitely lose you don't expect to be in profit always there will definitely be lose but one of the most important thing is to learn how to reduce your lost, if you are trading any coin always make sure you make use of stop lose I believe stop lose is very important in trading because I believe is better to lose 20% of your fund than to lose 80% of your fund and when it comes to cryptocurrency you don't have to invest all your capital and you don't have to borrow money to invest in Cryptocurrency. Whenever you are trading always make sure you use stop lose it is very important in trading.

By opting for long term, we can easily tackle the risks in crypto trading. Yeah, dealing with long duration of holding plans, we can easily adopt what risk management suggests. But, most people are not ready to accept long term holding as a type of trading as they need quicker profits and making entry and exit out of technical analysis and not just by profit levels.

Risk management will become possible for people when we experience the real heat market fluctuations; how you manage your unrealized losing trades is the basics of risk managements.

The long term is always the best choice to go along with the market.

It's important to know your plans and how long you should be staying in the market. There will be disappointments that you'll have because the shorter term has always the action and will give you little losses up to half of your capital's percentage loss.

Risk management shall be learned while you're trading for you to adopt the market's volatility and change from time to time.

This is what I have been telling of the newbies who are trying to get started with cryptocurrency trading. I told them that no matter if they are newbies or pros, risks are still there. There's no such thing as risk-free trading. All they need to do was to learn how to set the stop loss and never become greedy by just simply take profit when the amount is already good enough. Risk management is necessary, and we have to accept or acknowledge if we ever lose that trade. And by the way, always put in your mind that we experience more losses than wins.

That is right because without calculating the %s of the wins or losses, a trader will not have a clear insight of his ongoing trading journey and he will not know where to take maximum profits to beat the losses and where to take the least loss if profit is not being seen in that trade. A good trader must diversify his capital in different trades and can also use his full capital but with proper risk management, so if there are 10 open trades of equal amounts and 7 of them are in profits, that trader should take those profits at times when it is needed. If 3 of those trades are in losses, trader should have set a good SL to let him save himself from losing big from those trades.