Why risk management is so important for Every Trader. - page 6.

jossiel

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Quote from: Smitty Werben Man Jensen on June 21, 2021, 05:54:27 AM

Quote from: jossiel on June 20, 2021, 06:02:11 PM

It is difficult to make profit in trading and that's why every single thing that you can think of as hindrance and resolution, you need to think of it.

And if you've gained a profit already although it's somehow small, you may fit with that for the while because if you continue for that day, you might get some worse results.

It's true it's not as easy as people imagine that in fact making a profit in trading is not easy,
it requires a lot of effort and having the right strategy depending on the conditions at the time

Not just strategy and effort.

But you also need a good amount of capital for you to have an acceptable profit. You just can't earn good with small amount on it unless you've got a jackpot with some altcoins that are too risky for you to partake.

CryptocurencyKing

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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.

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Quote from: jossiel on June 20, 2021, 06:02:11 PM

Quote from: ?? on ??

Quote from: jossiel on June 17, 2021, 08:51:29 PM

Quote from: Jazzi Mahesh on June 17, 2021, 12:07:53 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

It is difficult to make profit in trading and that's why every single thing that you can think of as hindrance and resolution, you need to think of it.

And if you've gained a profit already although it's somehow small, you may fit with that for the while because if you continue for that day, you might get some worse results.

It's true it's not as easy as people imagine that in fact making a profit in trading is not easy,
it requires a lot of effort and having the right strategy depending on the conditions at the time

apityeh71

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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.

jossiel

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Quote from: jossiel on June 17, 2021, 08:51:29 PM

Quote from: Jazzi Mahesh on June 17, 2021, 12:07:53 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

It is difficult to make profit in trading and that's why every single thing that you can think of as hindrance and resolution, you need to think of it.

And if you've gained a profit already although it's somehow small, you may fit with that for the while because if you continue for that day, you might get some worse results.

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Quote from: Jazzi Mahesh on June 17, 2021, 12:07:53 PM

Risk Management is imperative for becoming a successful trader. You should learn about the same and you must invest in the market with small amount to develop the skill.

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.

jossiel

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Quote from: Jazzi Mahesh on June 17, 2021, 12:07:53 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.

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Quote from: CaVO32 on June 15, 2021, 06:25:29 PM

you will have idea what possible scenarios are you going to encounter with, and how are you going to face it once the situation is already at hand.

Yeah risk management is all about how you are going to handle a situation for minimum losses and exploring new opportunity at the early possible time. When we have everything planned well in advance then encountering any kind of situation will not be a big problem.

Quote from: Jazzi Mahesh on June 17, 2021, 12:07:53 PM

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

Risking in smaller amount must be one of the easiest way to start assessing risk management and everyone should go for it if they wish to get into manage risk within their control from day one itself. I agree that before we are developing skills which are required for effective trading, we should not go for investing in very big amount; even this sounds like basics of trading, most newbie traders never follow it which leads them into quick losses at the end of the day.

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Risk Management is imperative for becoming a successful trader. You should learn about the same and you must invest in the market with small amount to develop the skill.

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Quote from: CaVO32 on June 15, 2021, 06:25:29 PM

Quote from: Renampun on June 15, 2021, 01:40:36 PM

Quote from: cheezcarls on April 18, 2021, 02:20:19 PM

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.

trading without risk management = war without preparation...

Trading is not just a game of buying and selling, every decision we make requires careful analysis. This is why risk management is needed so that we have prepared if the steps we take are wrong. For traders selling too quickly can destroy your moment, selling too late is like that too.

Unfortunately, a lot of traders have no patience to attend to this risk management. This is why a lot of them are getting screwed and they will only realize it after. But if you are a trader that wanted to minimize losses, it is better to perform risk management, whatever coin you prefer to invest with. At least, you will have idea what possible scenarios are you going to encounter with, and how are you going to face it once the situation is already at hand.

When you are just starting into this career then all of suggested behaviors and ways will not really be discovered right away and due to experience

you would really realize up things on which one should really be done and which thing shouldnt really be done. Mistakes are common but to think

that these are stepping stones to make yourself a better trader and as you go further you would really be making yourself a good trader;

Risk management is important because without this then you wont really sustain into this market.

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Quote from: Renampun on June 15, 2021, 01:40:36 PM

Quote from: cheezcarls on April 18, 2021, 02:20:19 PM

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.

trading without risk management = war without preparation...

Trading is not just a game of buying and selling, every decision we make requires careful analysis. This is why risk management is needed so that we have prepared if the steps we take are wrong. For traders selling too quickly can destroy your moment, selling too late is like that too.

Unfortunately, a lot of traders have no patience to attend to this risk management. This is why a lot of them are getting screwed and they will only realize it after. But if you are a trader that wanted to minimize losses, it is better to perform risk management, whatever coin you prefer to invest with. At least, you will have idea what possible scenarios are you going to encounter with, and how are you going to face it once the situation is already at hand.

kram31

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Perhaps, risk management could help us here in crypto trading to minimize our losses into our assets.
In fact, even myself I don't know if I apply this risk management, because I traded based on my experienced
in trading and learned from the mistakes I made it before.

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Quote from: cheezcarls on April 18, 2021, 02:20:19 PM

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.

trading without risk management = war without preparation...

Trading is not just a game of buying and selling, every decision we make requires careful analysis. This is why risk management is needed so that we have prepared if the steps we take are wrong. For traders selling too quickly can destroy your moment, selling too late is like that too.

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Quote from: SacriFries11 on April 24, 2021, 07:44:38 AM

Quote from: adzino on April 23, 2021, 03:22:55 PM

It is very important. Without risk management you will be "careless". And being careless never ends up being good. Trading is very risky. You can't always expect to make profit. And when you trade, you may make profit or a loss. Risk management won't increase your profit, but it will in most of the cases help you to reduce your loss. Without risk management you might lose everything you have. Risk management helps you to think about the future and what you wish to achieve. So if you don't have any risk management, it's like you don't even know what your end goal is.

Without risk management is not trading it's already gambling. I remember in early days in trading, I disregard the proper way and not even use risk management, with just 2-days, I already lose 30% of my capital and exit the trade. Being greedy also is one thing that you must not apply in trading, 10-30% is already good profit and not aim for the one time shot that make you rich. I always trust the process and proceed to other trade after I won the trade. Consistence is also the key, always happy with you're wins.

I agreed with you here a trader need to aim for a profit of 10% to 30% with a tight stop loss based on the trader strategy to manage the risk, I usually place my stop loss below a support zone when I am buying or above resistance zone when selling with a risk ratio of 1:2 and disciplined to take profit appropriately to avoid greediness when the price hit stop loss I move on, the market has not respect for any trader, there is always another day and new opportunity to trade and making profit consistently makes a good trader.

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Quote from: BTC_Mouse on April 18, 2021, 04:18:56 AM

~snipped~

Most of the people trying to trade for the first is just because they have seen people got so much profit from trading and they would like try that out. But, they don't know how much they lose to reach that point.
That's pretty much the summary of your post and people have to actually understand what most trader experienced at the background, not just the profit wise.

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Quote from: semobo on June 13, 2021, 02:47:16 AM

In simple words, minimize your losses then you will win big. No one can keep their profit ratio 100% but they can keep it higher by reducing the risky decision and also can enable stop loss to preserve from sudden market dump. And if you are a day trader then just got for very small profit margin and keep doing it multiple times as much as you can.

This is where most newbies in crypto failed to see. They thought, once they enter in this market, it is easy peasy and they can easily gain profit and get rich. It is the same like any other investments, risk management is vital in order for you to understand better the market and so to prevent unnecessary huge losses. Though the market movement in crypto is very fast, you can identify factors that may help you understand specific coins such as following their development updates, actual accomplishment in their roadmap, their performance of their app, how they respond to their customer's feedback and others.

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Risk Management is the key to achieve success and if you are willing to make more from Forex, you should definitely learn about Risk Management.

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Risk management is very important for every trader to minimize losses. Being a trader is not just being a risky person, you should also learn how to minimize losses and earn huge profit through the right management of your assets.

semobo

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In simple words, minimize your losses then you will win big. No one can keep their profit ratio 100% but they can keep it higher by reducing the risky decision and also can enable stop loss to preserve from sudden market dump. And if you are a day trader then just got for very small profit margin and keep doing it multiple times as much as you can.

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Quote from: qwertyup23 on June 12, 2021, 05:24:44 PM

Quote from: Mpamaegbu on April 18, 2021, 09:54:19 AM

Besides, beyond all that the OP has stated in respect to risk control and money management is the issue of "Patience" and "Emotional control". I will go with the trader with a 1/5 risk to reward ratio even though the win rate is small. What that means is the trader will tend to be more selective of trades to execute and not just be in every trade.

Just like by trading stocks, there are certain indicators that will help you decide on whether to pursue a trade or not. You must indeed have, a risk control management in order to get out of the stock before the value plummets down in the market. But in reality, it is easier said than done as these indicators are not absolute information that will give you 100% knowledge.

Trading stocks or cryptocurrencies involve risk that one should take into consideration before delving into it. There was a published article that 97% of day traders lose money in their first month of trading and the other 3% make money, LINK, as much as a bank teller.

The chances are very unfortunate but I don't rely on it. I may not discourage people to go into trading if they want because if they want to learn and able to change their mindset, they will surely find a way to succeed.

97% is a huge number, can say most of them are noobs which trying to prove themselves and pretending that they are good but somehow, that brought them to a tragic loss. And this means that we never have to underestimate trading and we have to keep in mind that this is not an easy job, and it is certainly be needing control and risk management.

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