Why risk management is so important for Every Trader. - page 3.

rahmatullah9305

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Quote from: BTC_Mouse on April 18, 2021, 05:18:56 AM

Today Market Suddenly dump, so I explain why need risk management is so important for Every Trader.

📌 If you enter a $100 trade and lose 15%, you’re down to $85.

📌 If you make 15% profit on your next trade, now you have $97.75

📌 It's harder to recover losses than to preserve funds. Don't think how much you can make on a trade. Think of how much you can lose on a trade. Risk-Reward ratio is key.

🎯 Also win % does not make a successful trader, but strategy and risk management do.

For example:

✖️ One trader has a 60% win rate but his portfolio is down 6% using a 2/1 risk-reward.

✔️ Another trader has a 30% win rate but his portfolio is up 12% using a 1/5 risk-reward.

Expect to lose short term. Plan to win long term.

📌 So, it’s necessary to have very strict rules on risk management that help you to always preserve the capital and not to take crazy risks.

risk management is very easy for traders who are able to control their emotions in trading. Stop loss is impossible for us to handle 100% in trading, some beginner traders who jump into cryptocurrency trading are often unable to control their emotions, this includes me when I first jumped into trading when this dump became frightened and made the wrong decision. so it is necessary to learn how to manage risk and be consistent with the initial target setting.

chanler

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mulierum.com

for a trader minimizing losses is the main thing. Therefore, it is necessary to have control in it so that we are not trapped in a state of continuous loss. risk is definitely there especially with this ups and downs crypto market but we must be able to deal with it well and believe that we can do it. risk management is very important so that we can control our trading activities in the future. it's not an easy thing either, but if we can understand our own trading flow well then it will help.

finaleshot2016

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Quote from: lepbagong on September 17, 2021, 11:44:28 PM

Quote from: Panxora_COO on September 02, 2021, 08:23:14 AM

Part of the problem is that what feels right is frequently the wrong thing to do. That's why having models or a strategy to follow gives you a path. Then you have to be disciplined in your approach.

You are right, because all of this is caused by overconfidence, which often results in what they do must be right. it shouldn't be like that, it's not very good too feel that what they are doing must be right. must be aware that everyone will experience the name of mistakes that are not realized, which may be out of control.

Therefore, experience in every action, is always the main milestone to step into something that might be done, by continuing to hone yourself and analyze well. because everything needs to be done perfectly to get the best thing later.

Agreed, some individuals are simply overconfident and do not consider the possibility of a negative conclusion; people always feel that it will always pump, but the contrary occurs, and in the worst event, it remains at the dip. Consider that if you've done risk management, you'll be able to stop your losses and diversify your holdings, resulting in more profits. It is preferable to have experience before investing large sums of money; experience is the greatest method to stay on track with your investment.

doremonchina

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risk management is so importent becouse its cover loss of traders and cut losses for all traders account if a traders makes good profits and making smart money and risk occur then they loss all money and they are in loss but in this time stop loss is a great way to stop her loss
use this tip if you getting some profits then put stop los and also stop orders to keep safe your profits and also make some good plan for your future trading
unfurtunetly some traders entry in trading without any idea of trading at any platform which give huge loss her money

Rehan Zakir

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Risk management is very important in every field of life. Without manage risk our loss chances are very high. And in trading risk management is an essential part of trading. In trading we named it stop loss. It means you manage your risk that after that rate i will exit the market. In this technique your total account balance will not vanish.

lepbagong

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Quote from: Panxora_COO on September 02, 2021, 08:23:14 AM

Part of the problem is that what feels right is frequently the wrong thing to do. That's why having models or a strategy to follow gives you a path. Then you have to be disciplined in your approach.

You are right, because all of this is caused by overconfidence, which often results in what they do must be right. it shouldn't be like that, it's not very good too feel that what they are doing must be right. must be aware that everyone will experience the name of mistakes that are not realized, which may be out of control.

Therefore, experience in every action, is always the main milestone to step into something that might be done, by continuing to hone yourself and analyze well. because everything needs to be done perfectly to get the best thing later.

Dr.Osh

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Quote from: cheezcarls on July 13, 2021, 07:33:37 AM

This reminds me of one of my friends who had problems with risk management. He made a bad trade like going all-in. Despite that I have given him advice of not going all-in and should diversify instead, he decided to push through. In the end because of his bad trading decision, he almost lost all of his money and was depressed. I highly agree with you that risk management is very important, especially in the financial side.

well, if your friend chooses all-in, then the risk percentage also increases. this makes me think that this is related to the explanation in the cryptocurrency world that the percentage of profits on an up and down is very different.
however, the most important strategy in trading is to make a sign for a cut loss. it can make a trader minimize the risk. Besides, another mistake your friend makes is that he goes all-in. well, in terms of profit, it is very profitable. however, in terms of risk, it is very dangerous, especially if he does not have a good management strategy in the world of trading.
well, it can be an important lesson for us in the future.

Panxora_COO

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Chief Operating Officer of the Panxora Group

Right now my firm Panxora is offering bitcointalk members the opportunity to use our professional risk management service without charge. We are a registered Cayman Islands Asset Management company and these models have traded over $800,000,000 worth of crypto-assets since 2017.
Visit this thread to get further information.
FURTHER INFORMATION ABOUT PANXORA RISK MANAGEMENT AS A SERVICE

fullhdpixel

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Quote from: Questat on July 13, 2021, 08:44:51 AM

if we are too careless and don't have a market advantage which knowledge and skill, the chances are huge that we gonna lose. It is something we need to invest in first in Financial Risk Management and so we can appreciate how it was important for us for our next journey.

A lot of people make a good fortune in trading because they work hard to learn as it was the warrant to succeed. If we don't care and place some importance on Risk management, we are simply putting ourselves at risk and possibility losing our money.

That liquidity is the thing that saves people, if we want risk management to be done perfectly then we need to be liquid a bit at all times so that we can make some profit but not everyone have unlimited funds so it becomes a problem for some people.

I agree with you that without risk management all we have is losses that can't be taken back and just keep on losing money, and that is why it is a bad thing however at the same time I believe that we should be able to do risk management even when we do not have too much money and it is not simple at all, it is really a difficult thing to do when you have a very little amount of money. So I do not know what people with less than a thousand dollars do for risk management, I know I didn't do any risk management at all and it was a horrible period for me, all my losses were near permanent losses but after that I got a bit easier profits.

Panxora_COO

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Chief Operating Officer of the Panxora Group

Part of the problem is that what feels right is frequently the wrong thing to do. That's why having models or a strategy to follow gives you a path. Then you have to be disciplined in your approach.

Ridi

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Risk management is so important for every trader because it helps reduce losses. It help protect traders' accounts from losing all of its money. Risk management helps to identifying risks, problems or disasters before they happen so that we can solve out these problems.Risk management is key to trading. Every trader lose sometimes but good traders respect and manage their risks that's why risk management is important to every trader. 🙏🙏

matchi2011

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Quote from: Mauser on July 13, 2021, 02:45:20 AM

Quote from: horrifiedx1 on July 13, 2021, 03:06:59 AM

most of us and myself included, by trading will get a lot of money quickly, that was the first time in my mind, but it turns out that after trading it is not as easy as we imagine, we are like running a business by calculating the level of risk every time we make a trade. transaction. therefore I realize that my money is very valuable to me, so there must be risk management to anticipate analysis errors

Instead of only focusing on the money we wan't to make we also need to take into consideration the money we could lose. Trading and investing is always a Risk / Reward game, taking risk means we have the chance to get a reward for it. But it doesn't mean we will always get the profit. A good risk management process means that we are trying to minimise the risk of losing money while still receiving a decent profit.

Different strategy that the main point is to earn, either way if you can minimalize the risk of losing your capital even you are only getting
small amount of profits.

High risk though can bring decent profits, once your position has been place to the right project and the value went high, you'll going to
convert huge amount of benefits.

Mauser

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Quote from: horrifiedx1 on July 13, 2021, 03:06:59 AM

most of us and myself included, by trading will get a lot of money quickly, that was the first time in my mind, but it turns out that after trading it is not as easy as we imagine, we are like running a business by calculating the level of risk every time we make a trade. transaction. therefore I realize that my money is very valuable to me, so there must be risk management to anticipate analysis errors

Instead of only focusing on the money we wan't to make we also need to take into consideration the money we could lose. Trading and investing is always a Risk / Reward game, taking risk means we have the chance to get a reward for it. But it doesn't mean we will always get the profit. A good risk management process means that we are trying to minimise the risk of losing money while still receiving a decent profit.

jinneas

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Good risk management in the transaction can effectively reduce losses. Risk management is the key to success.
Before trading, you must observe market liquidity and analyze market conditions, and have your own criteria for judgment. Most transactions in the crypto market are high-risk and high-returns. Only by doing a good job of risk management can reduce losses and maximize profits.

Questat

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Quote from: cheezcarls on July 13, 2021, 07:33:37 AM

This reminds me of one of my friends who had problems with risk management. He made a bad trade like going all-in. Despite that I have given him advice of not going all-in and should diversify instead, he decided to push through. In the end because of his bad trading decision, he almost lost all of his money and was depressed. I highly agree with you that risk management is very important, especially in the financial side.

if we are too careless and don't have a market advantage which knowledge and skill, the chances are huge that we gonna lose. It is something we need to invest in first in Financial Risk Management and so we can appreciate how it was important for us for our next journey.

A lot of people make a good fortune in trading because they work hard to learn as it was the warrant to succeed. If we don't care and place some importance on Risk management, we are simply putting ourselves at risk and possibility losing our money.

cheezcarls

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This reminds me of one of my friends who had problems with risk management. He made a bad trade like going all-in. Despite that I have given him advice of not going all-in and should diversify instead, he decided to push through. In the end because of his bad trading decision, he almost lost all of his money and was depressed. I highly agree with you that risk management is very important, especially in the financial side.

kotajikikox

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Quote from: airdata on April 18, 2021, 09:01:39 AM

Cryotp Trading is not a Hassle free business, this is very risky business for new people, and nobody can make good amount from crypto currency without any Risk. On the First time i invest a little amount on a Coin now i already make 10x from my investment.

Are you sure? first time investing and now profiting x10? Common man are you serious ? Grin

But well lets assume that you are the question is why still not selling the coins? or why not buying again if you had already sold the coins?

Quote from: ?? on ??

Every trader has to learn about stop loss and their limit to gamble around. When someone complains about the volatility of the market, they don't tell you the complete story. Without risk management, the trader will probably lose everything that they have invested and may not stand in the market for long.

Complaints about volatility ? lol if you are complaining about that then better to get out of this market because crypto investing is a lot of risk as the volatility makes this market moves.

horrifiedx1

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most of us and myself included, by trading will get a lot of money quickly, that was the first time in my mind, but it turns out that after trading it is not as easy as we imagine, we are like running a business by calculating the level of risk every time we make a trade. transaction. therefore I realize that my money is very valuable to me, so there must be risk management to anticipate analysis errors

GreenHash

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The emotional part is very important. Know how to endure in moments of loss to be able to sell when you recover.

ROSERTY

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Any investment and trading are risky, especially in the crypto market. Investing in cryptocurrency is a risky investment for many people. The cryptocurrency market is volatile and risky.
High returns are bound to have high risks, so before trading, you must understand the nature of the currency, analyze market conditions and price trends, learn and do a good job in risk management, and reduce the loss.

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