Why risk management is so important for Every Trader. - page 5.

Oilacris

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Quote from: Helpme_please on June 29, 2021, 04:29:05 PM

Quote from: jossiel on June 28, 2021, 06:52:27 AM

Quote from: BitTraderCute on June 27, 2021, 07:25:47 PM

every business have their own risk, even if we trade in real life we will see risk that may suffer us later. And its happen in finance market which is have bigger risk in my opinion. There are huge risk with huge gain and every investors that will join in this market must understand about it. Our money could be zero if we didnt use risk management in finance market, price could goes down anytime and all price almost be zero. Stop loss or other MM will help us secure our money when it happen.

The risk remains.

We can potentially lose our money if we don't know what we trade and why we're trading. The risk will be with any of the chosen field we do, trading or investing/hodling.

Whether you've got a huge capital as you trade or invest, it can potentially go to zero if you're reckless and just trades with your emotion.

big capital didnt guarantee to us we will could survive longer than trader with small fund. Usually they were too confidence with balance they have and careless when every open transaction. Let transaction opened without any clear money management either stop loss or another ways to secure their money. Money management will always help us in extreme market condition that suddenly happen.

A very wrong mindset to have because big capital wont really make out guaranteed of success because what matter most is to sustain yourself or survive in the market.

You would really be needing risk management and making it as a default thing as this is the main factor on where you do really need and the most important.

As a trader then earning profits or money on this market is hard but could really be possible if you do know on what you are doing.

Helpme_please

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Quote from: jossiel on June 28, 2021, 06:52:27 AM

Quote from: BitTraderCute on June 27, 2021, 07:25:47 PM

every business have their own risk, even if we trade in real life we will see risk that may suffer us later. And its happen in finance market which is have bigger risk in my opinion. There are huge risk with huge gain and every investors that will join in this market must understand about it. Our money could be zero if we didnt use risk management in finance market, price could goes down anytime and all price almost be zero. Stop loss or other MM will help us secure our money when it happen.

The risk remains.

We can potentially lose our money if we don't know what we trade and why we're trading. The risk will be with any of the chosen field we do, trading or investing/hodling.

Whether you've got a huge capital as you trade or invest, it can potentially go to zero if you're reckless and just trades with your emotion.

big capital didnt guarantee to us we will could survive longer than trader with small fund. Usually they were too confidence with balance they have and careless when every open transaction. Let transaction opened without any clear money management either stop loss or another ways to secure their money. Money management will always help us in extreme market condition that suddenly happen.

jossiel

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Quote from: bitgolden on June 28, 2021, 12:47:42 PM

Quote from: jossiel on June 28, 2021, 06:52:27 AM

We can potentially lose our money if we don't know what we trade and why we're trading. The risk will be with any of the chosen field we do, trading or investing/hodling.

Whether you've got a huge capital as you trade or invest, it can potentially go to zero if you're reckless and just trades with your emotion.

Yeah, because nothing comes with zero risks. We are always talking about bitcoin is risk-less in long run holding still it is coming up with at least 0.001% of risk as anything may happen in future which may not be predictable with a human brain. So, not risking with all our money may help in the end which must be treated as the highest prioritized principle in risk management of crypto trading.

Risk management got its impact in finalizing our outcome of trading in direct proportional way so giving it importance by following it while trading will lead to sustaining good results in crypto trading.

People don't understand that fact about bitcoin. They see the current drop of it but they never look at the long term power that it's going to have.

Well even in today, bitcoin is already showing what it can manage and maintain its pricing from the moment that it had dropped from the ATH.

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Quote from: jossiel on June 28, 2021, 06:52:27 AM

We can potentially lose our money if we don't know what we trade and why we're trading. The risk will be with any of the chosen field we do, trading or investing/hodling.

Whether you've got a huge capital as you trade or invest, it can potentially go to zero if you're reckless and just trades with your emotion.

Yeah, because nothing comes with zero risks. We are always talking about bitcoin is risk-less in long run holding still it is coming up with at least 0.001% of risk as anything may happen in future which may not be predictable with a human brain. So, not risking with all our money may help in the end which must be treated as the highest prioritized principle in risk management of crypto trading.

Risk management got its impact in finalizing our outcome of trading in direct proportional way so giving it importance by following it while trading will lead to sustaining good results in crypto trading.

jossiel

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Quote from: BitTraderCute on June 27, 2021, 07:25:47 PM

every business have their own risk, even if we trade in real life we will see risk that may suffer us later. And its happen in finance market which is have bigger risk in my opinion. There are huge risk with huge gain and every investors that will join in this market must understand about it. Our money could be zero if we didnt use risk management in finance market, price could goes down anytime and all price almost be zero. Stop loss or other MM will help us secure our money when it happen.

The risk remains.

We can potentially lose our money if we don't know what we trade and why we're trading. The risk will be with any of the chosen field we do, trading or investing/hodling.

Whether you've got a huge capital as you trade or invest, it can potentially go to zero if you're reckless and just trades with your emotion.

SonyZ3+

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It is never possible to do business without risk. If you want to be a successful businessman, you need to know the strategies of the business and move forward efficiently and take risks if necessary. However, if you want to do business without risk, you must start a business with less capital. And you always have to keep in mind that there can be loss along with profit. To survive in the crypto market you need to take risks and keep your mind fully prepared that you can lose your capital at any time. And this problem has created a limitation in cryptocurrency.

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Quote from: SonyZ3+ on June 27, 2021, 04:19:05 PM

It is never possible to do business without risk. If you want to be a successful businessman, you need to know the strategies of the business and move forward efficiently and take risks if necessary. However, if you want to do business without risk, you must start a business with less capital. And you always have to keep in mind that there can be loss along with profit. To survive in the crypto market you need to take risks and keep your mind fully prepared that you can lose your capital at any time. And this problem has created a limitation in cryptocurrency.

Do not forget about luck though. Risk management is not a guarantee of success,,, it is a hedge against failure and bad luck, but it cannot prevent it from happening if it does. Imagine opening a retail business at the end of 2019 for example in a country where there is no welfare or covid relief. No matter what, 2020 covid lockdown would have killed you.

Crypto crashes? exit scams? Dead exchange CEOs? Equal bad luck.

BitTraderCute

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every business have their own risk, even if we trade in real life we will see risk that may suffer us later. And its happen in finance market which is have bigger risk in my opinion. There are huge risk with huge gain and every investors that will join in this market must understand about it. Our money could be zero if we didnt use risk management in finance market, price could goes down anytime and all price almost be zero. Stop loss or other MM will help us secure our money when it happen.

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Quote from: Xinarae* on June 18, 2021, 12:34:17 AM

It is never possible to trade without risk the main task of a successful businessman is to take risks and achieve success. It is much easier to avoid risk if you know the market well and know the business strategies need to move forward efficiently and start with less capital.

To trade, you must take risks, but the most important thing is how you deal with those risks. You can't ignore the risk of trading, but you can reduce it with proper risk management. So risk management is important in trading.

Quote from: apityeh71 on June 20, 2021, 11:31:43 PM

I did not use stop loss for my crypto trading activity, because I did long term trading , but for risk management I prefer to do diversification of investment. Im not only make invest on crypto but also on stocks, commodities and forex. At the moment I been loss at crypto, but I was made good profit from stocks and forex.

Longterm investment is certainly a good decision, but it is also important to note the market conditions before making long-term investments. I also often do not use stoploss for longterm investments, but I do use stoploss in shortterm trades to save my fund from sudden losses. So risk management has to be used when the trader goes to trade.

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Quote from: doomloop on June 26, 2021, 01:15:58 PM

They trade and don’t care about applying strategies that’s going to help them in managing their risks. They are just looking for profit, they are only calculating the prints and are not calculating the risks that they are about to take, which is very bad.

Yeah, not all the traders are good in both technical part and in management part of trading. That kind of traders are buying signals from others for their trading and they never think about other aspects of trading because they only need signals to buy and exit (it can be either at target or stoploss).

I'm sure this types of traders when they are working for developing their own risk management strategies then definitely they could get more opportunities compared to how they are currently doing only with signals. These trader must be having different reasons why they are not working on other aspects of trading and one of them must be lack of time as such traders are trading only in part-time and they might be having a regular day job and in evening time only they might be trading. So, not too bad still not up to the mark of pro trader.

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Quote from: GeorgeJohn on June 26, 2021, 03:24:50 PM

Quote from: kopijos on April 20, 2021, 06:53:03 PM

risk management for a trader may be difficult and needs to be looked at. but believe in trading to be able to get a profit we don't always have to get 100% but it's better to get less but regularly. So I think your risk management needs to be applied and try to expand your thinking if in trading there must be a minimum percentage of profit, not just a maximum profit as you are worried.

You need to grab this! Risk management is a way of ensuring that risk to reward ratio is balanced by trading with lower risks and higher rewards in percentage. You can decide to trade with risk to reward ratio of 1:5, which is a profitable way to trade.
Just like entering a trade with risk to reward ratio of 1:5, if your stoplose is worth $10 then takeprofit will be $50 because the reward ratio is higher than the risk taken. This is how risk management work, it helps one to trade wisely and avoid unnecessary risks that could affects one capital during trading.

It should be balanced as always and as an investor then you do really need to take a look whether it would be worth or not when it comes to risk because you cant just make out positions without any basis because this would eventually turn out to be a mistake or do end up on being a loss or becoming the reason on why you had lost money in your investment.

You should be wise towards your actions because if you dont mind much about on how to manage risk then you are just basically doing gambling in the first place.

Risk management should be a standard thing and that shouldnt really be separated anytime you do make out investment because this thing is really very important.

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A merchants should likewise realize that how generally will be happy with their profit and they need not to be thinking back if at any point they hold for it's anything several days. A ton of merchants experience this subsequent to taking benefit yet the worth of their crypto keeps going up they need to lose this sort of mentality as they as of now have an exchanging plan activity. Losing in exchanging is ordinary obviously, you need to set a constraint to the quantity of misfortunes and measure of cash.

GeorgeJohn

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Quote from: kopijos on April 20, 2021, 06:53:03 PM

risk management for a trader may be difficult and needs to be looked at. but believe in trading to be able to get a profit we don't always have to get 100% but it's better to get less but regularly. So I think your risk management needs to be applied and try to expand your thinking if in trading there must be a minimum percentage of profit, not just a maximum profit as you are worried.

You need to grab this! Risk management is a way of ensuring that risk to reward ratio is balanced by trading with lower risks and higher rewards in percentage. You can decide to trade with risk to reward ratio of 1:5, which is a profitable way to trade.
Just like entering a trade with risk to reward ratio of 1:5, if your stoplose is worth $10 then takeprofit will be $50 because the reward ratio is higher than the risk taken. This is how risk management work, it helps one to trade wisely and avoid unnecessary risks that could affects one capital during trading.

doomloop

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It is very important that a lot of people gets to see this. There are people who are but are very careless. They trade and don’t care about applying strategies that’s going to help them in managing their risks. They are just looking for profit, they are only calculating the prints and are not calculating the risks that they are about to take, which is very bad.

Anyone who plans to go far with cryptocurrency trading has to arrange themselves properly and start making use of the right strategies, that’s what’s going to help you succeed. If you don’t learn to apply risks management to your trading, then you’re going to be more likely of losing.

SaveOurSea

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because the price of cryptocurrencies is very volatile, look at all coins and tokens currently returning to their original prices before the pump,
a decrease of more than 100% occurred in altcoins, of course if you don't have good risk management, you can lose all your money , and trapped in a long time,
so make sure you have risk management ready if you trade or invest in the crypto world, good luck!

Questat

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Quote from: ningrum on June 22, 2021, 07:03:09 AM

Yes, if you look at the current conditions, the risk of losing profits is certainly quite large,

The risk never reduce, we are still in a high risk investment market, and that is the norm of crypto.

Quote from: ningrum on June 22, 2021, 07:03:09 AM

so we need to be careful and at least be able to manage the existing risks,
despite the fact that not everyone can do that because it's not as easy as we think

If we have the knowledge, we understand the risk, and if we understand the risk, we will be able to manage the risk.
Therefore, it's really a basic thing to understand crypto before investing, especially the risk associated to it.

it's true that it's very attractive due to high return, but always look at the other side as well, not only the reward.

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Quote from: DarkDays on June 21, 2021, 06:03:15 PM

Quote from: ?? on ??

Quote from: jossiel on June 17, 2021, 09:51:29 PM

Quote from: Jazzi Mahesh on June 17, 2021, 01:07:53 PM

You should learn about the same and you must invest in the market with small amount to develop the skill.

Learning with a small amount should be the starters activity so that they will have the idea how hard it is to make money in trading. And as they learn with that little amount, they will also understand why risk management is very important.

And when they have learned about risk management, they will now change their minds that earning and trading throguh crypto requires patience and time.

we must understand how difficult it is to make a profit, so that we can appreciate the risks that must be borne in every transaction. that way we can regulate psychology when we use large capital and can appreciate our capital. many traders fail because they are complacent only to be oriented to big profits in a short time

I think at times like these when the market is not looking strong that many people start appreciating how hard it is to make profit. Risks are everywhere while chances to make gains are not so common. Because the market can be so competitive and volatile managing risk is crucial to retain any profit or else you'll fall over the line of despair.

Yes, if you look at the current conditions, the risk of losing profits is certainly quite large,
so we need to be careful and at least be able to manage the existing risks,
despite the fact that not everyone can do that because it's not as easy as we think

DarkDays

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Quote from: jossiel on June 17, 2021, 09:51:29 PM

Quote from: Jazzi Mahesh on June 17, 2021, 01:07:53 PM

You should learn about the same and you must invest in the market with small amount to develop the skill.

Learning with a small amount should be the starters activity so that they will have the idea how hard it is to make money in trading. And as they learn with that little amount, they will also understand why risk management is very important.

And when they have learned about risk management, they will now change their minds that earning and trading throguh crypto requires patience and time.

we must understand how difficult it is to make a profit, so that we can appreciate the risks that must be borne in every transaction. that way we can regulate psychology when we use large capital and can appreciate our capital. many traders fail because they are complacent only to be oriented to big profits in a short time

I think at times like these when the market is not looking strong that many people start appreciating how hard it is to make profit. Risks are everywhere while chances to make gains are not so common. Because the market can be so competitive and volatile managing risk is crucial to retain any profit or else you'll fall over the line of despair.

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Quote from: dimonstration on June 21, 2021, 02:12:29 PM

Quote from: CryptocurencyKing on June 21, 2021, 07:21:31 AM

Risk management is one thing that actually puts you in profit and then let you be there, profiting. It aids you to ensure that should your analysis go ruge and your in or headed for a lose, you actually know when to get out or hang on in a losing trade. Its a strategy that helps you keep greed away. Not having a risk management plan in place means, your out to let greed set in and greed is one emotion you won't want to play with in trading. Its sets 8n a confusion that can actually finish you off.

In essence, one good way to manage greed is by having a risk assessment or management plan. It keeps you in check and within the safe zone of the charts.

It's not we know the risk, we must know where to applies it. Sometime we tend to follow our instincts to the point we suffer our living. There are many now who wanted to invest since the market is going red. It's good to invest but better set realistic limit and time line since the market is too volatile and its unpredictable nowadays. Trading is like gambling in terms that we must set limits as well try to learn on what strategies works on us best.

Trading would really be like gambling if you do just simply make yourself jumped in without even just knowing the basics of it in terms of technicalities and in terms with the risk involved.

This is is why its always been important that you should know on what you are dealing with because if not then most likely you would really be messing up with your investment.Risk management does play a sure thing.

Always be mindful towards your actions and dont just mind off on how you would make out money.Always be wary on how thing works and how thing
moves.

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Quote from: CryptocurencyKing on June 21, 2021, 07:21:31 AM

Risk management is one thing that actually puts you in profit and then let you be there, profiting. It aids you to ensure that should your analysis go ruge and your in or headed for a lose, you actually know when to get out or hang on in a losing trade. Its a strategy that helps you keep greed away. Not having a risk management plan in place means, your out to let greed set in and greed is one emotion you won't want to play with in trading. Its sets 8n a confusion that can actually finish you off.

In essence, one good way to manage greed is by having a risk assessment or management plan. It keeps you in check and within the safe zone of the charts.

It's not we know the risk, we must know where to applies it. Sometime we tend to follow our instincts to the point we suffer our living. There are many now who wanted to invest since the market is going red. It's good to invest but better set realistic limit and time line since the market is too volatile and its unpredictable nowadays. Trading is like gambling in terms that we must set limits as well try to learn on what strategies works on us best.

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