Why risk management is so important for Every Trader. - page 8.

RealMalatesta

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

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

New people are obviously lagging in experiences hence there will be no wonder on their view on crypto trading. The real wonder is even experienced traders are looking into crypto trading in similar manner and then losing all their capital unconsciously.

Risk management is vital in trading for profitable trading and whenever we fail with it, we will lose the trades. Losing trades and then regretting will not change the things, naive traders must work on fulfilling where they are actually lagging. Instead of regretting, I must say to accept the losses but learn something out of every trading and try to not repeating the same mistake which eventually lead to good risk management over the time.

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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

SacriFries11

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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.

dezoel

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That aside, I think anyone that wants to be a trader needs to be sure that they learn the trading and be good at it before they go for it. Imagine knowing risk management and your trading skills are still zero and whack, and you’re still losing most of the times , even though you’re preserving it and not losing much, it still doesn’t make any sense because you’re still losing.

So, it is good to put yourself in check and be sure that trading is meant for you and you’re good at it, then also learn risk management and you’re good to go. When you stop a loss you are able to make back whatever you have lost within a short time.

carlfebz2

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Quote from: Stedsm on April 23, 2021, 03:27:58 PM

@OP, risk management is definitely a term a trader must keep in his mind in order to get more gains over losses as if the risk:reward ratio is not understood before entering a trade, then that trade may end up sucking out everything from his balance if he goes all in without any stop loss. Also, it's better to trail your stop loss and keep it very near to the ongoing price (if your position is in profit), so that even if the market tries to move against you, you won't suffer losses but will end up in profits.

Those are already on the technical side of things which you would sooner or later to be discovered on when you do gain gradually some knowledge on your trading career.

You would really be needing that risk management because you can able to balance out on what should be the actions that you should make for you to make that efficient way of trading.

This would involved really lots of trials and errors because these kind of state cant really be achieved if you dont have able to experience it and risk management thing is
something the most major factor for you to sustain yourself into this very unpredictable market.

Stedsm

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@OP, risk management is definitely a term a trader must keep in his mind in order to get more gains over losses as if the risk:reward ratio is not understood before entering a trade, then that trade may end up sucking out everything from his balance if he goes all in without any stop loss. Also, it's better to trail your stop loss and keep it very near to the ongoing price (if your position is in profit), so that even if the market tries to move against you, you won't suffer losses but will end up in profits.

adzino

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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.

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Quote from: Yatsan on April 19, 2021, 12:04:00 PM

Risk management is really important for every trader since we are dealing and working in a highly volatile market and we do know that risks are associated with working into it. Practicing how to manage certain risks will help you out as a trader to make your losses lessen and not be dragged down even further. Being able to deal with 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 into 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 the possibility of greater losses so you can still have something to start with and will not end up empty-handed.

Wow, that's stunning. You have explained this matter in extremely fluent terminology, Risk Management. Trade is a place where no one can attain without risk. Trading means risk investment. So it is very important to have this risk management. Only with risk management can that circumstance be avoided. And if you grab a step in a rush, that is what provokes danger. So you constantly have to deal with the situation calmly, and the system to handle this is risk management.

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Quote from: Kittygalore on April 23, 2021, 07:01:15 AM

Quote from: AicecreaME on April 23, 2021, 05:23:58 AM

Risk management allows us to manage our losses, on how we are going to deal with it, without risk management, we will have a hard time on making decisions on how to deal with our losses. To make this simple, for example is you enter a trade with a $50 on it, but you lost it.

Now, most of the traders would do is to enter a trade with a $100 so when they win, they'll have profits instantly, a high risk, high reward move. However, the most safest way for it is to bet lower than $50 and slowly recover your losses, because losing the $100 will just make your loss even more big.

That depends on the risk tolerance of a person, if they have a high risk tolerance then probably the risk management for them will be different. But if you are not one, I agree with what @AicecreaME says here, take it slow and you will arrive there eventually.

Risk management is the important key to success in trading, but many do not know how to manage it. But I agree with @AicecreaME that if we use a bet lower than $50 and try to recover the losses while still having the rest amount, that will be a backup for us. We can only use small parts to trade and try to make a profit and if we can do that, we can only rinse and repeat the process to make a bigger profit. Do not chase bigger profit if the market is not moving good.

geegaw

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Quote from: AicecreaME on April 23, 2021, 05:23:58 AM

Risk management allows us to manage our losses, on how we are going to deal with it, without risk management, we will have a hard time on making decisions on how to deal with our losses. To make this simple, for example is you enter a trade with a $50 on it, but you lost it.

Now, most of the traders would do is to enter a trade with a $100 so when they win, they'll have profits instantly, a high risk, high reward move. However, the most safest way for it is to bet lower than $50 and slowly recover your losses, because losing the $100 will just make your loss even more big.

Indeed, risk management is a system built on the actual needs that we want, removing emotions to complete a certain action, what will be shown here will be the future moves, the strategies we must do to the success or failure of the market, the commands here are absolute and irreversible under any circumstances to maximize the meaning of this system. It sounds quite simple, but most of the time, the user mentality breaks the system's rules very often, they are not afraid of punishment, they accept a greater price to maintain their profitable opportunity

quins

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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.

Wow is so great, actually it so risky to invest in newly people as a trader, but we can learn if lose.

Vaculin

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You can appreciate this thing when you are in the actual trading and when you are in the difficulties. Because this will simply help and guide you for a better and acceptable trading output.

yeah, never finds it so easy and it really needs the effort to do that. But I believe that everyone can do this if we are willing to help ourselves and free ourselves from suffering huge losses. We usually lose from trading it is because of having a lack of self-control, we make a decision without basis, that is not to wonder why we got this easily.

Kittygalore

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Quote from: AicecreaME on April 23, 2021, 05:23:58 AM

Risk management allows us to manage our losses, on how we are going to deal with it, without risk management, we will have a hard time on making decisions on how to deal with our losses. To make this simple, for example is you enter a trade with a $50 on it, but you lost it.

Now, most of the traders would do is to enter a trade with a $100 so when they win, they'll have profits instantly, a high risk, high reward move. However, the most safest way for it is to bet lower than $50 and slowly recover your losses, because losing the $100 will just make your loss even more big.

That depends on the risk tolerance of a person, if they have a high risk tolerance then probably the risk management for them will be different. But if you are not one, I agree with what @AicecreaME says here, take it slow and you will arrive there eventually.

AicecreaME

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Risk management allows us to manage our losses, on how we are going to deal with it, without risk management, we will have a hard time on making decisions on how to deal with our losses. To make this simple, for example is you enter a trade with a $50 on it, but you lost it.

Now, most of the traders would do is to enter a trade with a $100 so when they win, they'll have profits instantly, a high risk, high reward move. However, the most safest way for it is to bet lower than $50 and slowly recover your losses, because losing the $100 will just make your loss even more big.

trigger1975

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

Amen!

Ararbermas

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Therefore, before we enter cryptocurrency trading, we must be able to understand what risks will be faced, not only understand but must be prepared to accept the reality, because trading will not be smooth forever, there will be profits and losses. as Op says it is more difficult to recover from losses because we will indirectly trade emotionally because we are more concerned with the funds we spend to get them back.

of course definitely.. Actually at first if we will take this causes seriously. Probably we all can manage all the risk when it comes trading.. And for sure there are no complainant how risky this thing is. But unfortunately some ppl nowadays are relying only to some stuff around the internet and didn't even scared of what will happen afterwards despite of being careless on what they have.. "trade what amount you can afford to lose" this line seems a joke for everyone nowadays especially beginners..

SquallLeonhart

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Quote from: ice098 on April 22, 2021, 09:22:51 AM

Even how good a person is in predictions, in trading, gambling, or in investing as long as he doesn't know how to manage the risk he was willing to take experiencing a losses may always be happen.

Yes agree. Accuracy on prediction may get voided if we are not good in risk management. It is kind of you may get good entry points but if you are not good in risk/reward managing then when you enter with lots of positions then you may get liquidated even for a small market correction. So, all your skill in analyzing market may end up in vain if you are not good in risk managements.

Quote from: Kelvinid on April 22, 2021, 09:37:52 AM

it is better not to trade anymore or look for another opportunity. Because the biggest challenge in crypto is how to control our emotions and it is a part of risk management.

I guess setting up daily limits may help in that scenarios. You may go for recovering only if you are left with your limit for that day; if not you must stop for the day and may continue on next day with all new mindset up. There are lots of aspects are being covered under risk management which includes emotion control and sticking with plan as well.

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Quote from: teosanru on April 20, 2021, 04:05:33 PM

This signifies how crucial it is to save your capital. Trader must always choose a lost opportunity over lost capital because growing back capital is certainly impossible because it not only breaks your finance but also breaks you emotionally. You get self doubts and start to get tons of second thought about trading which eventually hurt your trading even more.

If that you can never think about good and being proactive with your losses, it surely gives you no hope to recover your losses and expect more to come. if that only we can see despite everything and hard works, it is better not to trade anymore or look for another opportunity. Because the biggest challenge in crypto is how to control our emotions and it is a part of risk management. If we are not capable to change that then there is no reason we should have to continue this thing because we are just going to nowhere.

ice098

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Quote from: rosebrand on April 22, 2021, 05:13:44 AM

Risk management is key, no matter how good a traders is at technical analysis if he doesn't apply risk management it's certain he will be in great lose someday, some times analysis might go wrong but with the help of risk management the lose won't cause much damage or having great effect in the portfolio of the trader. Risk management is key without it many people trading with leaverage will liquidate so quickly, in margin trade risk Management helps alot to sustain one's account even when there is a crash in the Market, with risk management your account will still be breathing real good.

Yes it is and always because risk management was the one who can save you from huge loss ahead. Even how good a person is in predictions, in trading, gambling, or in investing as long as he doesn't know how to manage the risk he was willing to take experiencing a losses may always be happen. It is also a must that we know how to do our own technical analysis, to have our own research and study the crypto that you are willing to trade or invest because from here you can measure what kind of risk management you must take.

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Quote from: rosebrand on April 22, 2021, 05:13:44 AM

Risk management is key, no matter how good a traders is at technical analysis if he doesn't apply risk management it's certain he will be in great lose someday, some times analysis might go wrong but with the help of risk management the lose won't cause much damage or having great effect in the portfolio of the trader. Risk management is key without it many people trading with leaverage will liquidate so quickly, in margin trade risk Management helps alot to sustain one's account even when there is a crash in the Market, with risk management your account will still be breathing real good.

Yeah i believe that risk management is important to every trader across the globe, because trading is a risky type of occupation, crypto is risky it is high on volatility so if we can't manage risk we maybe loss a huge amount of profit or maybe capital so as a trader risk management is important.

Topic: Why risk management is so important for Every Trader. - page 8. (Read 1597 times)