Why risk management is so important for Every Trader. - page 7.

jambul_kribo

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Quote from: Sterbens on June 10, 2021, 09:00:55 AM

no need to be complicated in defining it all.
Even in simple terms, risk management is managing the risk of loss which will result in the value of your portfolio decreasing and it may be possible to run out.

Isn't in trading the main goal is profit, now with risk management we can manage and manage how to get profit results.
if you don't do risk management, it's not trading, but spending money.

i am agree with "spending money" . most of traders even didnt have trading plan and money management. they are very confused with what willl they do with money , and no reason why buying coins and what will they do if make mistakes. if our goal were profit , we must prepare all stuff well before start clicking buy or sell,

qwertyup23

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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.

Maslate

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Quote from: Sterbens on June 10, 2021, 09:00:55 AM

no need to be complicated in defining it all.
Even in simple terms, risk management is managing the risk of loss which will result in the value of your portfolio decreasing and it may be possible to run out.

Isn't in trading the main goal is profit, now with risk management we can manage and manage how to get profit results.
if you don't do risk management, it's not trading, but spending money.

It is a need and it is a must for the sake that we are facing high-risk investment. Many traders never understand this, they just even ignore the importance of risk management but fir sure they soon realize what has its role and what could be an impact on their life as a trader. They never appreciate now and I know they didn't because they don't have the interest to learn. And that is why many had to suffer losses...

sr32703

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You know crypto investment isn’t a hassle free business so don't try to buy your selected currencies in one trade try to buy at least three phase. And risk management is a big term of any business so always try to adjust your buying price with market price if you follow this term you will be gainer otherwise you will fall in big losses.

taufik123

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Risk management is very important because these are some of the strategies that must be applied in trading to cut losses. Losses will be determined how many percent must be cut to stop the risk of greater losses.
In addition to risk management, capital management and controlling emotions are no less important. All are interconnected, to be able to get consistent profit all management must be done and don't be too greedy. determine what percentage of profit you will get every time you trade.

conected

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Quote from: andriarto on June 10, 2021, 08:17:50 AM

Quote from: feelideb on June 09, 2021, 08:21:56 AM

When the going is good in cryptocurrency market, you rarely think of huge risk you are taking when you enter a postion base on sentimental reasons and market situation! It is important to make sure that your risk / reward ratio is moderate! It hard to recover losses than preserving capital!

taking into account the risks and rewards in trading is needed every time we transact. By knowing that, we don't just focus on profits which can sometimes be depressing because we are too sure of the analysis. with the calculation of risk, then we can think logically, that in trading we must dare to accept losses if our analysis is not appropriate.

- Indeed, this management is a message, a sobering reminder when we've been too busy buying and selling, instead of thinking about profits and frequent wins, we should know about other variables of the market, except winning, the market will also inevitably fail, and when the market has failed, some individual attempt to buy more goods, it doesn't really make sense like risk management, we can't fight what has to happen, mitigating is the better thing we should do.

Sterbens

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no need to be complicated in defining it all.
Even in simple terms, risk management is managing the risk of loss which will result in the value of your portfolio decreasing and it may be possible to run out.

Isn't in trading the main goal is profit, now with risk management we can manage and manage how to get profit results.
if you don't do risk management, it's not trading, but spending money.

Maslate

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Quote from: Yamifoud on June 09, 2021, 08:42:03 AM

It was very important because that will helps to save your money and to avoid losses. It a big asset in handling your investment, without having any single knowledge on how to manage risk, the closer you will end up losing. Learning about his matter is an investment, yeah, many people had spent their time studying and learning about this and you know what? They will succeed.

I think you need to read this...
https://searchcompliance.techtarget.com/definition/risk-management

We can't simply ignore the use benefits of risk management in trading. Some just don't mind it while many were busy learning about this. Well, of course, it can't be really appreciated at first but in the long run, we discover its importance especially when the crisis has come. So, it is much better to spend time learning with this while trading and to see what it could help to improve our trades.

andriarto

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Quote from: feelideb on June 09, 2021, 08:21:56 AM

When the going is good in cryptocurrency market, you rarely think of huge risk you are taking when you enter a postion base on sentimental reasons and market situation! It is important to make sure that your risk / reward ratio is moderate! It hard to recover losses than preserving capital!

taking into account the risks and rewards in trading is needed every time we transact. By knowing that, we don't just focus on profits which can sometimes be depressing because we are too sure of the analysis. with the calculation of risk, then we can think logically, that in trading we must dare to accept losses if our analysis is not appropriate.

Yamifoud

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It was very important because that will helps to save your money and to avoid losses. It a big asset in handling your investment, without having any single knowledge on how to manage risk, the closer you will end up losing. Learning about his matter is an investment, yeah, many people had spent their time studying and learning about this and you know what? They will succeed.

I think you need to read this...
https://searchcompliance.techtarget.com/definition/risk-management

feelideb

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When the going is good in cryptocurrency market, you rarely think of huge risk you are taking when you enter a postion base on sentimental reasons and market situation! It is important to make sure that your risk / reward ratio is moderate! It hard to recover losses than preserving capital!

enawati

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When I decide to holding coin for long term, I prefer to learn more about the fundamental and the trend of the market without stop loss. Actually knowledge how to predict the trend of market is more important because that will trigger all crypto turn to bullish. Stop loss and trailling stop is necesary to use it only for day or swing trading. And for holding, the risk management and strategy that i use is Dolar Cost Averaging.

BitTraderCute

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Quote from: RondoAnyar on April 24, 2021, 09:55:54 AM

Quote from: airdata on April 18, 2021, 08:01:39 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.

but sometimes new people think of crypto as a good business. but believe me they don't have good management to be in crypto, they just rely on speculation and end up losing. There are so many incidents of loss from new people and they end up regretting it

they just thinking about profit and never about loss. i see there are alot beginner in market, they were attracted while they see their friend get alot money and thinking this is be fastest way to earn huge money. hype and fomo be reason when they come here.

milewilda

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Here are some good links to read up about risk management and im sure this one would be helpful.
Risk Management Techniques for Active Traders
https://tradeciety.com/why-most-traders-lose-money-risk-management/
https://www.xtb.com/en/learn-to-trade/introduction-to-risk-management

Spending some time to read up wont really require much hard work and time spent.

GeorgeJohn

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Risk management is a very important aspect of trading that most traders could easily ignore cause of the urge to make fast money. Like we all know that slow and steady wins the race but human greed is a very big factor one has to fight and overcome cause every individual has little or much of it beneath us especially, with strategy that is giving high returns. One can always be tempted to use high risk to reward ratio.

We all want to make money but the pace is always different from one trader to another. So the need for risk management analysis is very important in trading to safe one from unecessary risk that can affects our trading psychology. It also help one to be discipline and conscious on how to use leaverage to trade successfully without over trading.

taufik123

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Quote from: abel1337 on April 20, 2021, 02:21:56 PM

Risk management is one of the important things that the trader should do as a habit, Doing risk management needs good control of emotion, especially in critical times like having a losing streak. Risk management could help you recover the losses but when emotion got messed up, The process that you executed will do nothing.

Risk management and emotional control are two things that are interrelated and cannot be separated.
Trading success depends on how to manage risk properly and how to control emotions that must be done. We have to stay calm to think of a strategy to do next.

Emotional control will usually be trained when experiencing continuous losses. We have to stay calm no matter what. don't do anything stupid.

justdimin

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Quote from: Sled on April 26, 2021, 04:23:57 AM

We definitely don't understand how Risk Management is important in trading if we aren't able to put it as a serious deal. We can appreciate it much once we applied it IRL which is the thing we supposed to do otherwise, we will no longer reach our goal but just a failure.

Risk management itself is a serious one but we traders are treating it in other way.
The importance of risk management is being learned by most traders only by experience after lots of losses but the actual thing should be they must learn from books and videos so that they never need to face any losses to learn the importance of risk management. I mean we are learning it by costing something big and by wasting time.

Without risk management, we cannot find profits at the same time if your making profits without realizing the importance of risk management then you cannot sustain at same level of profits as one day or another you will start realizing along with losses -- that is from my own experiences.

Sled

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Quote from: iv4n on April 26, 2021, 03:55:04 AM

Quote from: MIner1448 on April 26, 2021, 03:38:21 AM

Very competent words, I will take note of:) risk management is of course important in our difficult business, where it is necessary to assess our risks constantly and make the right decisions, this will lead to an increase in our assets in the world of cryptocurrency. I do not always assess the risks in a particular transaction, sometimes emotions take their toll ... Of course, I try to fight against this.

Risk management is very important whenever we deal with money! This thread is a nice example of how risk management is applied to trading! And people should be aware of this if they plan to trade and make some profit!
You are more than right when you say how emotions take their toll in specific moments! I think that happens to most of us, just rare people are capable of completely removing emotions even when things get hot, and in trading "hot moments" happen often!

That is why we never say that all people had come into trading will succeed for the reason that not all of them are willing to control themselves but rather be controlled by their emotions. Yes, it is likely we fully manage to control our emotions but in a certain thing, we should have to do.
We definitely don't understand how Risk Management is important in trading if we aren't able to put it as a serious deal. We can appreciate it much once we applied it IRL which is the thing we supposed to do otherwise, we will no longer reach our goal but just a failure.

iv4n

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Quote from: MIner1448 on April 26, 2021, 03:38:21 AM

Very competent words, I will take note of:) risk management is of course important in our difficult business, where it is necessary to assess our risks constantly and make the right decisions, this will lead to an increase in our assets in the world of cryptocurrency. I do not always assess the risks in a particular transaction, sometimes emotions take their toll ... Of course, I try to fight against this.

Risk management is very important whenever we deal with money! This thread is a nice example of how risk management is applied to trading! And people should be aware of this if they plan to trade and make some profit!
You are more than right when you say how emotions take their toll in specific moments! I think that happens to most of us, just rare people are capable of completely removing emotions even when things get hot, and in trading "hot moments" happen often!

MIner1448

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Very competent words, I will take note of:) risk management is of course important in our difficult business, where it is necessary to assess our risks constantly and make the right decisions, this will lead to an increase in our assets in the world of cryptocurrency. I do not always assess the risks in a particular transaction, sometimes emotions take their toll ... Of course, I try to fight against this.

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