Topic: Why we need to prioritize risk management, as a trader! - page 2. (Read 668 times)

No matter how experienced and proficient you become as a successful trader, you still need to have proper knowledge of risk management strategies. To make a profit from your business, you must develop a practical plan to properly manage difficult risks. Or you may lose your money. The market will knock you down. To sustain yourself in the trading business, you must patiently learn the basics of trading and, at the same time, make yourself more efficient through practice. You will make mistakes again and again because none of us are above mistakes. But we must learn from that mistake without being disappointed or impatient so that we can use that learning in the future. Always remember that trading without a solid risk management strategy is more prone to losses.

Yep, you should also try to learn it with practise only with money you are willing to spend, and you are good to go, but it won't be an easy road paved with profits only

losses are part of learning and developing a trader's talent. but risk management is important to learn even if it is a beginner in trading. we can't be stupid traders who try to apply some trading strategies without risk management. it will only make novice traders experience greater losses at the beginning and they may give up before feeling success.

therefore, if you want to teach a novice trader, don't rush to teach how to open a sell and buy position. many things need to be prepared before a beginner is ready to trade. you certainly feel that currently, more novice traders are in a hurry to be able to master trading. maybe more precisely profit in trading.

That is true, but I also believe that bitcoin is as risk free as it gets compared to anything else. Would you like to talk about bonds? If the country gets worse then bonds worth nothing, would you care about gold? It has been seen as crashing before and with silver having higher potential these days could worth less, wars and such could cause so much problem for the supply and people may avoid it eventually, what about stock market? Companies are known to be huge and then crash, we don't know which one will do that next.

Honestly gold is the only one I may trust, it looks risk free unless something major happens, but even that became digital gold these days, not many people hold physical anymore and even if you do, security is an issue. Bitcoin is the closest one.

Basically, everything related to money has a level of risk that is generated without exception when someone is involved in trading.
We are unable to minimize the risk to zero percent because the market is difficult to predict so all we can do is minimize the risk with the knowledge we have.
If someone is not ready for the risk, then trading is not a suitable place for people like this because it can provide excessive psychology.
Trading must be prepared, where with knowledge people can make trading strategies more effective.

There is always a better approach to dealing with trading and that can be achieved when someone has good knowledge and experience can also be increased slowly.
Before everything is run, what is important is that we understand how to minimize risk and know how to trade properly. Because the risk of loss is difficult to predict or vice versa regarding profit if someone does not have the right knowledge.

There's no such thing about risk free or something that do talks about 100% no risks of losing money on which we do know that when it comes to this then it would really be that just normal that you
should really be having that trading plan or speaking about having those analysis on which you would really be needing it. On the time that you woudl really be taking actions without having any
basis then you are really just that basically doing gambling. If you havent been able to consider then sooner or later you would really be able to find out on how its necessary that you should
be considering these things. This is why it would really be that recommended that you should really know on what you are doing. You cant really just that dive in without having preparation.

On the time that you would really be trying out to deal with this unpredictable market then it doesnt mean that you would be making some unpredictable decisions without having no basis.
You are really just that increasing that level of risks on doing that. When you do have that sensibility on what are the things you've been dealing with then it would be normal
that you should be doing such right approach rather than on making it even more worst.

Without having loses in trading you can't learn trading because it's also important part of this traders need more experience and knowledge for having better results because this all is part of the success in this field risk management is surely important but still things needed more to explore about your work then we can go better in trading.

We are having many peoples those are well-educated but have not enough experience and knowledge are still having no success with peoples those are having good experience and knowledge are doing better things because they understand better risk management and things can take better understanding with time as well.

Everyone is staying with his own strategy with those who want to stay with short term they can go with short risk management because it's also important for them if they want to have success in trading.

We can only minimize the level of risk that is generated not avoid it because there is no such thing as trading that does not produce losses under certain conditions and that even happens to people who already understand trading quite well.
Basically people should also understand that trading and investing have different levels of risk and both have the same level of risk that will affect psychology if not carried out properly.

When someone is responsible in the right way then the risk can be minimized not eliminated completely.
At this level why people involved in trading must have good knowledge and skills, the goal is that they have readiness when trading, both when experiencing losses and vice versa.

Losses is a big part in trading. If you aren't prepared yourself to lose, then you shouldn't be trading your funds. While losses may actually be inevitable even for those professional traders, but we should remember that in order to learn our lesson and improve our trading performance, we should bear some losses and mistakes at first because that will help us motivate to improve our trading performance the next time we decide to trade.

You can't be trading if you don't know how to manage the risks as well as your emotions towards trading. Trading is certainly a tough job and it's more on losses than profits most especially if you decide to trade without sufficient learnings in trading and on how to trade within an unpredictable market. Risk management is the key, just trade when you are capable enough to minimize all the risks.

Traders often times try hard to generally manage risks without first considering their risk tolerance. Whatever strategy or plan a trader intends to follow while trading, they should consider their risks tolerance level too so they do not end up overdoing stuffs beyond their capacity. A trader who understands the level of risk he can accommodate does not just follow other people's strategy anyhow or make plans just for the money. Losses are bound to occur in trading but putting up strategies that align with our risks tolerance will help put our emotions in check.

While putting up strategies, we should not forget to keep ourselves abreast with the current happenings around the world and Constantly carry out continuous learning as this will help us keep up with the changes in the world of tradong. If losses should arise, it shouldn't be as a result of our own negligence and ignorance. It takes a lot from a trader to effectively manage trading risks.

Your on the point Mate, all this mentioned earlier are very important for any traders to lean towards before getting introduce themselves in to the trading, because the trading is all about knowledge and if a person doesn’t have the education background what are we think it can happen it lead him the person to lose a lot of his funds in trading that’s why is good to have education training before trading.

There some people that they’re educated but still lack of the experience about the trading, means they don’t know how they can do much research about the market analysis, and any one who is trading and don’t know how the market analysis works it might end of losing one day.

I guess in all hustles that comes with uncertain outcomes, risk management should be highly applied. What you can't risk, then you don't have to pursue doing it because it will only result into despair and frustration. But with risk management, you are aware of your own limits, just trade on what you can afford to lose and trade at your own risk.

Avoiding losses is something impossible but its somewhat that could really be lessen on the time that you do know about that risks management thing. This is where it would really be turning out to be relevant on the  time that you would really be applying it. Risks management wouldnt really be just that good for traders but also in all to those people who are really that getting involved with investment because this is where you would really be basing up into the actions that you would really be gonna doing and this is why it would really be that relevant on the moment that you will be touching up this space. To those people who dont mind about the risks would really be that ending up on being impulsive into their actions. You would really be needing up to prioritize things when it comes into this aspect because if you dont then you are susceptible into tons of errors or mistakes.

Dont make yourself that believe that you could be able to handle out this volatile market without having these considerations because it wont really be that effective if you would be making yourself to be a gambler like
mind into this volatile space. It cant just work and you are really just that putting yourself on such trouble or simply losing tons of money due to lacking of planning and other things in correlation.
When being a trader then there would really be so much things that you would really be need to consider out. You would really be able to realize those things on the moment that you do find yourself
hovering into this space. This is why its important that you should really be aware or simply wary on how things works and act accordingly.

Risk will be a priority in trading so that can avoid losses, but there is no guarantee that we can avoid the risk completely.
The level of security in trading so as not to experience losses is impossible to achieve at full percentage because there are times when we will run losses even though we have undergone risk management.
Thus risk management, knowledge and mental strength are equally needed because they are interconnected with each other when someone is trading.

Trading is not easy to do because it requires strategy and many other things, when our mental readiness is good, even though we will experience losses later, we can learn to improve.
There are many important indicators when someone is trading, but for me the most important thing is courage at the beginning and the rest can be learned.

Risk management is crucial when trading because of its high risk involved, that anytime you fail to manage the risk, you will see yourself regretting at the losing end. But if you are aware that crypto trading itself is way more risky and dangerous, then you have to exert a lot of effort just to control and overcome the risks, otherwise you will never be a good and profitable trader in the long run.

Yes, in trading risk management is a very important habit someone develops. Trading isn't a child's play and to be honest, everyone can't make profits as a trader. Only few people who have learnt trading deeply and have practical knowledge of it can make profits in trading.

Those few people prioritize risk management because if they lose a lot of money in one trade then how could they even recover that money first before making any profits? That's why they give much importance to risk management so they might not lose a lot of money in one trade.

Without any doubt, a trader's goal is to more as much profit as possible but in crypto market there's risk of losing ones capital by trading wrong coins and that's why only those who are good at risk management can make true wealth from trading.

Just like on the same people who are playing gambling on which they are really that believing that they could really be able to make money and wont lose in gambling, same goes into those people who are really that doing trading on which they do believe that they could really be able to make profits without any issue not until that they would really be experiencing some problems then this is where it would really be starting to kick in with those regrets on which of course it would really be just that normal. Why? no matter how you do find yourself being old or simply veteran into this market but still it wont really be giving out that kind of assurance
that you would really be able to make money or being profitable as a trader. What makes it harder? Of course the market is unpredictable on which its normal that there's no way that you could know on whats ahead.

As a trader then you would really be the ones who would really be finding out on which are the things that you would really be gonna needing on the time that you would really be doing trading.
Mistakes and errors are really just that normal on which there would really be those individuals that could easily that adapt and make realizations and there are ones who
are really that disappointed on the time that they would really be encountering those unexpected results.

I agree with you, lose is a part of the trading, no traders want to losses in crypto trading, but it can be happen for bad luck or lack of knowledge, but professional traders also losses in trading. Risk management is very significant factor for a trader. Beginner can mistake and easily losses full money in trading but experienced traders of course will determine their risk will affordable.

Indeed, Risk management is something crucial in crypto investment / trading. There are at least 3 important things why Risk management is crucial in crypto trading:
1. Preserving Capital: Part of strategy to minimize risk
2. Emotional Control: helps us to control emotions to be more calm, rational, and avoid fear and greed.
3. Sustainability: so that we can do long-term trading activities.

And the reason why we need to set risk management is because:
- Market Volatility and Sentiment
- Regulation
- Security
- Market Manipulation
- Emotional Trading
- Lack of experience and Understanding

This source is got from:
https://www.kucoin.com/learn/trading/mastering-risk-management-in-crypto-trading