Topic: You CANNOT trade successfully without RISK-MANAGEMENT - page 5. (Read 987 times)
Anyone can open trades that earn money and ones that lose money. The difference is how much you risk and how soon you close in and out of the money. Good risk management and trained judgement to make the process profitable. However, Risk management is like 80% but the other 20% being positive expectancy still matters. You can have 100% risk management and if positive expectancy is 0% you're still ruined. It's kind of like working out. Diet is the 80% but even without that 20% exercise, you won't lose build any muscle.
This is very important in trading if there is a "risk management". People have different fundamentals and techniques in having risk management not only in crypto trading even in a business just like an investment. The most I like is the "Loss prevention technique", this is very useful when you are minimizing your loss, instead of avoiding a risk completely.
But I haven't try to use any software about risk management. But I found this online article with helpful content, The Top 10 Risk Management Software Solutions.
But I haven't try to use any software about risk management. But I found this online article with helpful content, The Top 10 Risk Management Software Solutions.
Im more like a high risk and high reward type of guy, i've tried this technique in the past. I should never traded when price was high and in a key support price range. I guess the reason, why i did that is because of the FOMO i fear that when BTC price starts to bull i would have missed it but the reverse actually happened without putting any stop losses, i got rekt although my investment is not big that was all i have, it was still painful.
I found lots of threads here on the reasons for losses or the ways to earn in the long term.
Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
I'm already 10 years in trading and can state that to save is harder than to earn, that's my position. So, always plan your trading system with a special attention to risk management.
Here you can read about risks and losses:
https://www.bitinsure.com/blog/?p=35
And also reasons not to rely fully on trading bots:
https://www.bitinsure.com/blog/?p=59
Probably after it you will pay more attention to risks. Hope this will be useful.
What types and methods of risk management you use? Any software? What risk limits do you set?
Let's share
Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
I'm already 10 years in trading and can state that to save is harder than to earn, that's my position. So, always plan your trading system with a special attention to risk management.
Here you can read about risks and losses:
https://www.bitinsure.com/blog/?p=35
And also reasons not to rely fully on trading bots:
https://www.bitinsure.com/blog/?p=59
Probably after it you will pay more attention to risks. Hope this will be useful.
What types and methods of risk management you use? Any software? What risk limits do you set?
Let's share
totally agree.
personally i do it manually. will try to use software
Yes. Risk-management is a great part in every organization and in our daily activities. We must be prepared of any risk to arrive especially in trading. Somehow its really hard to predict the risks that may arise. But for those controllable risks at least we can be prepared of. Risk management is a cycle that needs to be monitored and provide solutions and improvement along the way.
Naturally. The first lesson/goal in tràding is not to eàrn, but to break even. And that's already the bare minimum. Although if you have a plan for losing money so that you can profit even more later on, as long as the probability of earning is more than 50%, you can probably risk it, as long as you can minimalize the losses as much as possible. I myself don't use any 3rd party software, just plain 'ol judgement for me. I make sure that even if I lose, the losses are at the bare minimum always, and if a choice presents to me a high risk high reward option, I most often would not go for it.
I found lots of threads here on the reasons for losses or the ways to earn in the long term.
Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
I'm already 10 years in trading and can state that to save is harder than to earn, that's my position. So, always plan your trading system with a special attention to risk management.
Here you can read about risks and losses:
https://www.bitinsure.com/blog/?p=35
And also reasons not to rely fully on trading bots:
https://www.bitinsure.com/blog/?p=59
Probably after it you will pay more attention to risks. Hope this will be useful.
What types and methods of risk management you use? Any software? What risk limits do you set?
Let's share
Totally agree with you, In this market we need to know risk management and have a clear investment plan. We cannot succeed if we blindly invest in this market, sooner or later we will lose all or invest in poor quality projects without any profits. When I started in this market, I invested in what I liked. But after a year of losses, I also learned how to manage risk and cut losses if necessary. Obviously it helped me a lot in this market and now I rarely lose Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
I'm already 10 years in trading and can state that to save is harder than to earn, that's my position. So, always plan your trading system with a special attention to risk management.
Here you can read about risks and losses:
https://www.bitinsure.com/blog/?p=35
And also reasons not to rely fully on trading bots:
https://www.bitinsure.com/blog/?p=59
Probably after it you will pay more attention to risks. Hope this will be useful.
What types and methods of risk management you use? Any software? What risk limits do you set?
Let's share
Exactly, that is very important, in every venture that there is a risk, we need to learn how to manage the risk.
Also, we need to be realistic all the time, as a trader our mindset should be for long term, and we have to ensure that we are able to initiate our strategy properly so we will not panic and we will always play our cards according to our plan.
Also, we need to be realistic all the time, as a trader our mindset should be for long term, and we have to ensure that we are able to initiate our strategy properly so we will not panic and we will always play our cards according to our plan.
Risk management is one of the most important things in trading. Large amounts of traders lose more because they do not follow risk management properly. Greed and Emotion Control those who can't make the Right decision and they lose their money. I've seen many people lose themselves because of overconfidence. As well as being a trading guru, he signals to others and loses them also. I've done a lot of damage by trading. Which is mainly because I didn't follow risk management properly. Now I learned my lesson and start follow risk management.
Stop loss feature on exchanges can be quite helpful for the traders to save them from big loss but trading comes with risk so we cannot trade without risk of losing our asset value so one must know when to stop when the prices are not as desired in the direction of trader's prediction.
I found lots of threads here on the reasons for losses or the ways to earn in the long term.
Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
I have been losing a lot lately.
The market is just unpredictable specially with bitcoin. It moves from price to another and it cannot be seen even with technical analysis.
I do hands only and not using any types of bots and many times my emotions gets in the way.
Hundreds of dollars in every trade and I think I may stop for a while just to make a bigger come back later on.
Yeah, this might be helpful.
Checking out those links given where those reasons for you to fail are common and its no surprise that majority of us do experiences such problem.Emotions is one of the
most common problem yet human beings do easily reacts to things which are really unpredictable and if you dont have much control of yourself then your destined to
bust up all of your trading capital.
I found lots of threads here on the reasons for losses or the ways to earn in the long term.
Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.
I have been losing a lot lately.
The market is just unpredictable specially with bitcoin. It moves from price to another and it cannot be seen even with technical analysis.
I do hands only and not using any types of bots and many times my emotions gets in the way.
Hundreds of dollars in every trade and I think I may stop for a while just to make a bigger come back later on.
Yeah, this might be helpful.
It is harder to save than to earn. And it is much harder to manage one's emotions in trading. That is one of the problems that will put aside risk management. People panic at times. They also feel fear sometimes. And also sometimes, they feel like being greedy is good. One of the basic things to do is to put stop loss in all your orders. That is enough to cut your losses. And another would be to put take profit limit to make sure you end up with a profit, however limited it may be.
Such things have often been discussed on sites, blogs, or trading articles, even when I first learned trading that was what I read, in my opinion almost all traders already know it all, it's just difficult to implement because it requires patience and discipline, I myself often impatient when trading.
investing will certainly be a risk in it, and the risk will always be there. but if we apply risk management well then we will be able to handle and minimize the risks that will come, although there will definitely be some risks that occur. by doing good management, investing will be safer.
Trading is just like our normal job as well, you cannot become successful if you are lazy enough to do it, that you are just trading for fun, or you are happy enough doing trade just to earn for a small amount of money. If you don't have enough strategy in trading even in job, you cannot be promoted at all and you cannot become successful.
Usually people take management as a very simple thing. It is a separate field and involve understanding of many important and difficult concepts. Risk management is the sub field of it. Risk is the part of every trade so management of it is very important part of it. Planning your trade and adopting the strategies that are more suitable and adoptable for you, what the risks it offer are and how you will deal with it is necessary. Also make a backup plan or alternative plan for your trade in case of high risk.Before we start in trading there is a lot of consideration even we have some research most of the time we encountered trading is too hard, trading is full of risk by having this kind of knowledge we can now understand what selling is. Trading is a process that you can earn a lot of money, but it depends on your willingness, knowledge and skills on how to manage your money.
Trading is just like our normal job as well, you cannot become successful if you are lazy enough to do it, that you are just trading for fun, or you are happy enough doing trade just to earn for a small amount of money. If you don't have enough strategy in trading even in job, you cannot be promoted at all and you cannot become successful.
Usually people take management as a very simple thing. It is a separate field and involve understanding of many important and difficult concepts. Risk management is the sub field of it. Risk is the part of every trade so management of it is very important part of it. Planning your trade and adopting the strategies that are more suitable and adoptable for you, what the risks it offer are and how you will deal with it is necessary. Also make a backup plan or alternative plan for your trade in case of high risk.
Trading is just like our normal job as well, you cannot become successful if you are lazy enough to do it, that you are just trading for fun, or you are happy enough doing trade just to earn for a small amount of money. If you don't have enough strategy in trading even in job, you cannot be promoted at all and you cannot become successful.
"Every management" is important for profitable trading; I mean fund management/diversification/ managing emotions and etc. You cannot shorten those list just with risk management. Simply, we must know what we are doing which alone will let you keep on booking profits regardless of how market fluctuates. If you fail in your management skills while trading, you may still find profits but that is simply due to your luck and not exactly due to your trading skills.
I agree that every trader cannot be conscious on all those big list of things but we need to be very much conscious all the time so that we can be profitable trader all the times.
I agree that every trader cannot be conscious on all those big list of things but we need to be very much conscious all the time so that we can be profitable trader all the times.
having risk management is important because without thinking about risk, the investment will not run optimally. therefore there are some market features that are useful for trading, namely cut loss which I think is quite important. because with this feature I think people will pay more attention to the risks that will occur when they make a buy, because in investing or trading we can't just think about profits.
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