Topic: Why we need to prioritize risk management, as a trader! (Read 668 times)

When a trader does not have complete knowledge about trading, then they must continue to learn about trading if they still want to make a profit on the trading they do and the lack of risk management of course this will be very difficult for a trader to make a profit so if someone wants to get good results on the trading they do of course they must really be able to analyze the market well so that they can decide to keep their assets or choose to sell with a little loss that they get because if they do keep their assets they will certainly experience greater losses and to be able to have knowledge about risk management of course we must be able to learn trading well.

Level of risks tolerance would really be that entirely be depending into someones experience because you would really be always reflecting or basing it out into your self awareness of skills.
It would really be that something that will really be that better in speaking about this matter rather than on making up such steps on which you do know that you arent that still knowledgeable into it.
Risk management will really be something that be relevant in the moment that you would really be doing trading. You would really be coming up with this idea or something that would really be in default
if we do speak about risk management. It would really be that impossible that you wont really be able to think about it.

Not unless if you would really be that become impulsive and you would really be ending up on having that gambler like kind of approach. So it would really be that detrimental
into the things that you've been having in mind too. It would be normal or something be in default that you would really be that dedicated into something
but you would be needing up that risks management.

Of course it's always essential to know the trader's risk tolerance first before dealing into risk management, simply because you can't be possibly taking risk and be able to manage it if that is beyond your risk tolerance. If you are a high-risk taker, much better because that only means that you'll be able to manage smoothly all the possible risks that you would be facing while trading. Trading is quite hard and risky, so you need to prepare for it rather than seeing yourself losing in the future.

At least to me this is a must, however this is the kind of thing that does not attract traders at all and this is clearly described on the books about trading, most aspirant traders care about identifying patterns which could signal a drop or a surge on the price, as they believe that is what it can bring them the profits they want for themselves, however the first step taken should always be about the best measures you can take to protect your capital, because if you can do this effectively then earning money is just a matter of time.

Where there is risk management, but there are also highly uncontrolled emotions, the success will be less likely to be possible. That is already proven to majority of the traders. I believe every trader has his own set risk management, as there are certain risks that should be well-managed or overcome.

But emotions are also quite inevitable. And that made some traders to find hard to succeed in trading because of their emotions that could trigger the success of their following trades. If they knew navigating their own emotions is definitely hard, hence they should not proceed to trading for the sake of avoiding too much losses.

Learning from the mistakes of other people is really the best way to move forward, it is not that easy to handle but you can definitely see it growing more and more. I believe that it is not that easy to clear, it's definitely going to be an issue and we should definitely consider to make a move about it.

I know that it is not going to be insanely well handled, there are so many issues about crypto that you can't always see others making a mistake and learn from it, some of the stuff are done by others and you may miss those because there are so many mistakes that one person can't see them all. However, it is important to have an open eye about all of this, that way you could lower your risk number and get a lot better results.

I personally keep it as low as possible, I do as little crazy as possible, my investments are always top ranked, and the only exchange that I keep money in is binance, rest are with me in my own wallet. These type of results are almost always great and will not get you rich overnight but will get you rich in a long period of time and you should not be worried about it. I love the fact that many people worry about what I do because it's such a small return for long period of time, but I do fine in the end.

There's no such thing about consistent profits and this is something that we should be baring up into our mind but somehow the exact or correct word into this one is on how to make ourselves that sustainable
when dealing up with this space. Never ever make yourself be thinking that you could make constant profits because due to that unpredictable state of condition towards this market then it would really be
never that ideal that you should fixating yourself on thinking that you could make profitson constant basis. No matter how good,veteran,old or long time dealing with this market but still it wont really be giving out that
100% assurance that you could really be able to make good trades from time to time. There comes a time that you will really be experiencing loses.

Risks management should really be that in default because having this then you do know on what are those probabilties that could happen towards the market and would be able to act accordingly
basing up into the experience that you have learnt all over the years. It would really be that recommended that you should really be that doing such thing about having those kind approach
because making yourself that way too optimistic will really be leading out into such disaster. This is why it would really be that recommended that you should really know on what you should
gonna do.

When a trader does not have complete knowledge of trading, he is more likely to lose from trading. However, one of the reasons why a trader cannot succeed in trading is lack of risk management knowledge. A trader should avoid making big losses the first thing that needs to be done is to pay attention to his risk management which can save the trader from incurring huge losses. It is better for the trader to avoid the period when he feels risky. If it seems risky to trade in any coin, the trader must take a decision considering the risks. In trading, when a trader can take the right decisions on risk issues, he can increase his earnings.

People take risk to always be a joke and if you don't have a good skill of managing risk then you will be safe because if you have experience and you are not managing or you don't have knowledge on how to manage does risk it will affect you one way or the other because trading you need to avoid a lot of risk so without the knowledge a lot of things is going to be impossible. And learning from other people's mistakes is also part of risk management so that you also do not make the same mistake because a lot of people are always neglecting the community were you can learn a lot of things. The moment you decide you want to trade that is the moment you will start a new school because you can not always be perfect so it will be better to take leaning serious so that you don't fall victim of losing money because nobody will be happy losing money so to avoid the losing embrace learning that way you can reduce the risk of getting liquidated, and what ever the challenge may be always share so that you will find help.

Our goal as traders is to make consistent profits. The only way to do this is to manage our trading risks well. Because by having good risk management, we can trade responsibly and certainly not take too much risk in making decisions.

In addition, market direction can change quickly, with negative news often shifting from a weakening market to a market that makes us as traders reach the lowest point. That is why it is highly recommended for you to invest while you still have a permanent job or earn a steady income, and do it continuously. You still need to have something that will keep you going even though you are trading. Good financial planning and risk management are the keys to success in trading.

This has gone out of the window in the recent years. What I mean by that is the fact that some people see the risk, and instead of managing it, they are just going "yolo" and investing like crazy into things that make no sense at all. The idea is that they think they are not going to be rich anyway, so they invest into something that could be a rug pull or a scam or a failure 90%+ of the time, and hope that they can eventually hit that one investment which would make them millionaires.

The story of the dude that put a few thousand that became billions is their dream. So they no longer care about the risk management at all and they just do whatever they want to do and if they lose, they already accepted that before they started.

You are right. The biggest mistake that most traders make these days is they don't apply proper risk management techniques to their trading, and due to that, they incur losses, when that happens, they become disheartened and stop trading. That's not the right way to do things in this market or in any market.

The first thing we need to understand as traders are that we are all prone to losses, even those who have been in this business for years and have years of experience and vast knowledge about the market will have to face losses sometimes, but they don't step back because of that but they use those losses as opportunities to learn from their mistakes so that they can improve their skills.

As they say, when life gives you lemons, make lemonade with it. This simply means that when there are difficulties, you need to use those difficulties to have a positive outcome from it. The same thing applies for trading as well. Evaluate your mistakes, work on them, and come out on the other side as a better trader.

Honestly the practical is more important then theoretical, because if a person have the Practical background even though he didn’t have any the theoretical nobody can challenge him and it will not face a to much lose like that, the experience is everything in life we can see some people are not educated, but their good creators then those that are educated.

There’s one story I have had about one cleaner in one hospital that the cleaner is always putting eyes when ever he see the doctor is attending the patient the young man always make sure his been together with the doctors when ever is in process of operations, let me cite the story in short, then there was a day that they brought a patient into that hospital the doctors where not around, this young man said they should not worry is going attend the patient and this man done the operation successfully without any issues, that’s same thing with the trading at times the theoretical dose not matter.

Greed and panic are problems for traders, when they have achieved their predetermined targets they continue to trade without regard to their initial targets. Moreover, if they trade without a target, it will clearly be riskier.

The market is not something that can be conquered, we must be able to understand that. So managing risk and always committing to our initial targets is something that must always be held firmly. At some point we may lose greater profits, but don't focus on that, because the risk of price reversal will always haunt us.

I consider one of the biggest is the greediness people tend to test their faith with their position until where the traders of buyer and sellers brings the market price some of them hit their TP/SL but of course most of us wants to earn more so they hold the position but not all story have the same outcome the market is playful makes a quick reversal instead. If you don't have a trading plan and self control with your trades possible you get a mistakes reason for revenge trade or cut your losses already.

Risk management is the core of crypto trading, without understanding how to manage risks during trading can lead to serial loses. Trading is hard and not a get rich quick scheme so it's important to learn and understand strategies to minimize loses. Understanding the fundamentals and technical analysis then applying the right mindset to trade, like many members have shared is key to being more profitable than loses in trading. Trading is not what people should rush into, it requires having the knowledge of it, gaining practical experience and being patience, not greedy and emotional.

Besides being too greedy to make money in trading sometimes people do not really understand how to do trade well, so that in certain conditions they suffer losses that are not able to minimize.
Trading is very close to losses if someone does not understand how to run and the absence of management or unable to manage well will cause panic which has a psychological resulting more chaotic.
Many things need to be considered in trade and there is a level of difficulty that is far more difficult to run by people who do not understand.

Even people who are so experienced in trade also face difficult situations and if mental readiness is not owned it will affect psychological.
Ensuring that trade runs well is not easy and maybe people need to increase skills so that they are far more experienced in handling them.

Risk management would really be something crucial or something that you would really be needing on the time that you would really be dealing up with trading. This is something that pertains about including into the must thing that you would really be needing up to consider because it would really be something that important because this would really be that avoiding yourself into those huge potential loses on the time that you would really be doing up trades or on the time that you would really be that making yourself having dealing up with this unpredictable and volatile space. You should really be that mindful about the risks and this is where risks management would really be that relevant or something that you must need to learn. It would really be just that important to consider and something that needs up to learn so that you could really be able to sustain.

On the time that you do make yourself getting involved into this market then it would really be just that right that you should really be that mindful on the things that you would really be that need up to be done.
You cant really just that make yourself having this kind of easy sailing into this volatile market. It cant really be just that too easy but rather this is something that would really be that so hard
and it would really be that always be that better that you should be finding things on which it would really be relevant and something that would really be helpful.

You are right, when you become emotional about what you are doing, then it is quite near impossible for you to make anything else and that is why we should be trying to avoid it as much as we possibly could. I am not saying that we could make insane returns, we just need to focus on what we can focus on, and that's all there is to it. If we end up with emotionally trading because of the feelings we have, there is really nothing that we can do, it's literally impossible to make that work any way or shape.

This is why we need to leave our emotions out the door when we are trading, so that we can do better job later on, if we can do that then it is going to be quite entertaining and the results will definitely be awesome. It is very hard to avoid those, of course we will have hard time, but that doesn't mean that we are going to end up with a good return all that easily, it's really hard to leave emotions, and it takes time to learn how to do that.

You said it all my friend but the technicality of it is to do the opposite of what causes your losses. If you know you mismanage your trading, then go for the right management, and if you know your strategy and psychology are not right, you change the narrative, it is as simple as that. The issue most traders have is that their minds are too positioned on the money to be made and this will easily make them emotional. Once you are emotional, there is little you can do to be successful. For this, I urge traders to ensure they are good in preserving their psychology, though the management you emphasised is also good but this is not more than having the right trading system too. Note that if the two are well-known but the trader is still challenged psychologically, all efforts will still be abortive.