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.

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

I think both you said there are the same. At first thought, it is seems that it is necessary for risk-taking but there are just people who can neglect it or they can get carried away and didn't realize that they already got over board. They will only know it once the rush subsides down and they can only regret it. I'm not sure but I think there are still things that can come early or first before risk management, like for example learning on how to trade and once we know them, risk management can also come naturally. Isn't this sounds like a shortcut? Hehe but for us to be sure, we can still take a look at its dedicated topic.

According to what I wrote above, it shows that risk management is a bit tricky to do and if you don't know how to do it yet, you won't also be aware if you are still within your limits or not anymore. As they say, experience can still teach us about this. So it can be considered to be okay if we are not really doing well on our early tries. If we start trading without any knowledge, losses can actually come in an instant (not in the future). Now, if we already gained enough experience through our long-time stay in the trading field/arena, losses can now actually be minimized.

Just learning theoretically without practicing is not going to teach you anything. Knowledge that is not being put to use is not a valuable knowledge therefore as traders, we have to practice the things that we have learnt very frequently. Risk management is going to help you to last longer in the market. With the right risk management, you are not going to lose money that you would not be capable of afford just as many traders are losing because you already put in an amount that if your analysis are to be wrong, the market is going to kick you out and it would not allow you to lose that much. Risk management also helps you to become a careful trader and would always be making profit and not like other traders that are trading at a lost but they are thinking they are making profits.

It's always like that in every market not just in crypto trading, and that's the reason only a few become successful while most goes bankrupt or just pull out after few hits.

We can't blame the people too because obviously who wants to make quick money see crypto currency trading as a way of doing it and with the influence of wrong people they just half cooked, didn't know the entire details so they realise everything we say in theories is not possible in reality.

Today's traders tend to prefer short-term trading. Analysis and planning are done for a short period of time. The risk management they apply must certainly cover a short trading period. I think long-term trading like that is not a matter of patience, but more new traders are currently more interested in the short-term profits that can be obtained. With that, they accept high risks.
Trader characters will always be different in determining their trades. Some traders are suitable and like short-term trading, but there are also those who prefer trading for a longer period of time. I am not sure about the risk management they consider. I think it is more about the consideration of the pleasure and habits of the trader himself.

Talking about risk, more longer the trade window the less likely you will lose means day traders are the highest risk takers and everything goes in their way then they can make tons of money depends on their capital while in reality it doesn't always goes in their way and the trading fee might even start eating their capital.

So anyone who wants to have less risk then they should move to longer form of trading like once in a few months would be more profitable than doing multiple trades in a day.

No trader likes to lose, but losing is part of the journey to success. Loss cannot be avoided, but you must learn how to deal with losses and turn them into profits. Risk management policy is different from loss management. In that policy, you will determine the level of risk and thus the level of acceptable losses, while loss management is about what you will do if the losses are greater than you can bear.

It is not possible to be generic in the aspect of losses in risk management, mentioning avoiding losses or losing money as negative effects in absolute values is selling smoke in the speech of any trader.

In reality, the application of risk management is measured by so many variables that even decision making can be related to a profit curve.

You want to get profit which is explainable but before getting profit, what do you need?

You must protect your initial capital safely first. Because if you can not defend your initial capital, you will see it becomes smaller and smaller with time then till a point it becomes nearly zero. At this point, you will have nearly nothing to do and getting profit is impossible.

If you can defend your initial capital, you will have many chances to get profit. Don't worry that you miss this opportunity, miss that chance because opportunities come and go, you only need to protect your capital and wait for one chance to catch it, and get profit successfully. It's enough and don't feel bad if you miss one, two or some opportunities.

We need to prioritize risk management when trading simply because we should limit or control our potential losses and maximize our profit potentials, and that will only be possible if we are completely aware on how to manage those risks in trading through trading knowledge and experience that we will acquire in our trading journey. Otherwise, if we can't deal with our risks properly, it's better not to start trading at all to avoid future losses.

I usually say this about trading, before you even learn how to take trades, know how to do technical analysis or fundamental analysis I personally believe risk management knowledge comes first. Bitcoin trading is risky and everybody is going on about that put at least with a proper risk management you can control this risk or worse it goes you can minimize the risk. The biggest misconception some traders have is that if they use so and so amount they are controlling risk but it far goes beyond that, you need to learn how to calculate things like position size and also how will be lost at your stop loss point.

Many at times you when one or two trade goes against a trader you hear stories like they got liquidated which isn’t supposed to, you can hit stop loss close to 10 times and still not get liquidated because the position size of the trade is well calculated that even a very high leverage wouldn’t liquidate anything.

About what kind of trades to take I Also like the 1:2 proportion trades but I prefer trades with 1:3 R/R  upward than any other trades because the reward should be multiplying the risk

Yes, there are indeed the basics but making yourself do tend to follow up on what you are really that trying out to isnt something that wont really be so simple.
Lets say that you would really be putting up that risks management or considering such step but on the time that you do face up some certain conditions then you do really
that become having that kind of hardship on which you would really be having that different way of approaching or reaction on things. Its good that you do able to make yourself that
wary about those basic principles on how you should really be handling up yourself towards into this market but doesnt mean that you wouldnt really be that trying out to do necessary steps.

As a trader without proper risk management in place there will be no profit made. I am always ready to risk with 0.1 to 2% of my capital for a small consistent and stable outcome. As a rule, I have been taught to only trade  at 1:2 risk to reward ratio. There are others ratios out there but I stick to this. My focus is to remain profitable no matter how low the success rate. My experience and experimentations have enabled me to understand and know what works best for me. So you have to find yours as it may not work for you too.

This is a basic thing that we must learn, but usually when at the beginning beginners forget it, but after a while they will realize how important it is to have knowledge and apply risk management and money management in trading. I will not say they are late to realize this, because it is better to realize something late than not at all. I think almost everyone is also late to realize this, but over time we can gradually apply it when we trade. It is not something new for beginners to only think about profit which is actually greed, and sometimes someone who has been in this room for a long time still has a greedy nature. It's just different because people who are experienced will usually know how to control it.

Why we need to prioritize risk management, as a trader! Totally agree with you because this is the key to make profit in trading world in my opinion if you can control emotion and that include fear and greed and then you can control the next lever of trading money management.

If you can control both money management and emotion I belive this can lead into a never ending profit

Having risk management is controlling your funds from high potentials of losses, so one should only trade when the market is favorable to trade, and with an amount that a trader may afford to lose. Know that in trading, a trader should be aware if there is high returns of investment everytime he'll trade, or else he will only trade just to lose his capital, just like majority of the newbies who rush into trading to satisfy their greed.

With proper risk management a trader is aware of the amount of money that they stand to lose if their trade does not go as the plan and with that analysis a trader may decide if that amount of money is too much to risk or if they are okay risking an amount of money. With the proper risk management strategy a trader can avoid trading in general and also the trader can avoid the surprise that may come from losing an amount of money that is unexpected.

Learning to trade requires more practical experience than theoretical research. You can learn the basics by reading about trading and then taking some practical steps and starting to trade will teach you a lot. It is good to learn from your losses as the best traders may lose millions but they learn from their mistakes and benefit from them in increasing their investment portfolio.

Well, it's already been proven that knowledge on technical and fundamental analysis makes you money in trading, but lack of proper risk management strategy makes you lose all your gains, so as long as trading is concerned, managing your risk properly is very much important if you really want to stay in the business and be profitable.

And one thing that makes risk management very much important is that, you might use a week to make up to $10000, but you can lose them all in just an hour, if you don't manage your risk properly, by putting stop loss, using low leverage if you must and trading only when their is opportunities in the market, not diving into the market and trade anything you see because you think that the more trades you take, the more money you make, no, trading doesn't works like that, so in essence of what am trying to say is that risk management protects your money, because that it's primary purpose, while knowledge, patience,  and emotional control makes money for you in trading.

I totally agree with you about risk management Trading without a solid risk management strategy is prone to losses. No matter how professional or experienced the trader is, without proper risk management they can face losses By identifying and evaluating critical risks, you can develop plans to manage them effectively

As a trader , our ultimate goal is making profits. No trader loves to losse.
There are common factors which makes a trader loose while trading, factors like ,
* Lack of education and training
*Insufficient market research and analysis
*Emotional decision making
*Greed, fear etc
*Poor risk management.
And the list goes on...
There are need to counter all of this factors that could make us loose money in trading.
And on of the ways to ensure this is in prioritizing risk management,  set a clear financial goal, implement risk mitigation strategies, identify critical risks etc.
Continuously monitor and adjust.etc
There are so many ways to go about this..
Prioritizing risk management is one of the safer way to earn on trade.