Bitcoin Forum

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 (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 ;)

Know these articles! Totally agree.
I use the automated risk management and plan trades, day etc in advance. Also, I analyze the stats and make the strategy corrections based on the statistics

I agree that saving is way harder than earning (my past trading experience always tells me so)

Sometimes we deeply understand the risk, but just don't really care about it and not manage the risk properly and when the bad time comes, we don't earn enough anymore and start losing capital.

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.

"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.

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.

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.

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.

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.

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.

Its always been like this and yes the market is always been unpredictable even how good your technical analysis is, it would still messed up the outcome of your trades.

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.

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.

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.   

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.

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

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.

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.

totally agree.
personally i do it manually. will try to use software

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.

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 (https://www.em360tech.com/continuity/tech-news/top-ten/risk-management-software-solutions/).

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.

I like to set rules for myself in trading such as never place a buy order will all my money. Only use 20% for a buy and save the rest for leverage in case the price drops.

Correct since if you cannot manage the risk then you will end up sweating and panicking when dumping stage occurs that's why we need to learn on how to stop loss and placed the next position when the price is cheap. But this strategy is so sketchy so better proper knowledge and understanding is the first thing we need to have for this to get an excellent result.

Risk management may help a trader to prevent losses but it cannot do anything with the factors which are deciding the profit levels. I mean to say we need to follow risk managements along with high-end market research analysis. But, I guess most traders are not preferring to do analysis hence they are just gambling with their trading which makes them not to have risk managements. Yes, they are into trading by believing into their luck factors hence they never need any kind of managements.

You must need to cover all aspects of trading to have high precision results. But, when you are not strong with the core things of trading then you may ignore all the secondary things too. Still, you may manage your self as a surviving trader but there will be no guarantee for long term perspective.

The person to blame is you, yourself. That is because of your wrong actions, wrong move, and wrong manipulation of your bitcoin. Practice critical thinking and planning for you to execute all your choices perfectly so that you'll avoid losing a certain amount of money. The best way is to learn from your mistakes and never lose hope. Although, having a break for a period of time will help you to reduce your stress and then make a better comeback.

Yeah many people are misconception about the rule of trading itself, many new beginners traders are choose to hold their coins that already exprienced a big loss because they think they will sell it again when the coin is rise but in fact it won't, they already spent so much time holding the loss coin although they could sell it with losses and move to another coin to make profits.

I don't have risk management beside of use capital that is not my daily money. So if i lose especially for hold bitcoin for long term, i wouldn't have big problem with it. Because for long term i don't need to think anything else beside bitcoin price and set up target and my emotion.

Personally I don't agree with your statement that it is harder to save than to earn. If you have a little bit of financial education you can easily put your money to work for you at a relatively low amount of risk. For the average amateur investoe the returns won't be very high if you choose to invest in assets with a low risk like real estate or bonds.

Trading is a whole other endeavour than investing. You've got to have a viable edge first of all and then to implement solid risk management principles that protect your account and limit your behaviour. Losses will incur inevitably when you're a trader, risk management will enable you ro "absorb" those losses without much damage while you expose yourself to gains.

You are right in saying that there's no success without risk possible to be a successful trader at the proper time to require the danger properly can try alright and be excellent at getting successful, it'll require tons of patience.
I agree with you that you cannot succeed unless one can take the risk.

I think what he meant by "save" is to break even, which is true, because people often forget to do so. They only focus on making profits, much so that losses seem inevitable for them, and this leads to continuous losses which in the end leads to bankruptcy. See, what you said about investing with a low amount of risk means to use proper "Risk Management", just like what OP has said.

I for one has never used other third party software to manage my Risk management. I have though asked for other traders opinions, specifically in my circle with regards to tips and tricks of Risk Management.

Risk management is very important fact but at the same time it has insane amount of levels. For example being super safe and putting money into bitcoin and having stop losses, sell and buy orders etc etc, doing dollar cost averaging and many other stuff all make sure you are in a safe and secure investment, that is called risk management.

However, you can be leveraging 100x on bitmex and trying to make a lot of money but still have a level where you get out before it gets liquid is also risk management as well, you are risking more and you are getting rewarded more if you are right but that is still risk management. From the biggest and safest method to riskiest and most dangerous moves there is a lot of levels of risk management, you have to realize and pick the right one for you.

when it comes to strategy there is no bulletproof strategy i ve seen, any strategy has it edges i assume. Risk management is very important for every traders.
Just like me meddling with intraday trading for crypto is like storm, but when i took setup for mid term (5-10 days ), i found my sanctuary in there.
Not everyone can overcome their physicology in it, but when it does, u fund your own style and i believe not everyone had same style.
When it comes to my style, i stop my loss when it comes down to my 10% of my fund. I know it hard to stop it when u loss, but i prefer loss it at that point and no more trade until it comes to some low point which i analyst using price action before and news.

I believe there is always risks in everything we do particularly in crypto trading because it's so unpredictable. And having a good risks management will ensure higher chances of making profits than committing losses. But since losses do happen inevitably, this is the reason why sometimes i tend to follow cut loss somehow.

Investment=risk
If you are a risk-takers, crypto suited for you and can make it successful but of course we need to manage it seriously. Risk is not a thing we need to worry about but a thing we need to take seriously for this will be a reason for your fall. No wonder why a few traders will never succeed in trading is just because they know about trading, they take the risk without putting themselves into a direction which brings them to a losing ends.

Everyone who trades will experience loses, because trading is a very risky activity. Especially trading crypto which price movements
are difficult to predict. So from that I strongly agree with the article in the opening post that it's one key to success in trading is risk
management. Many people consider trading too simple to buy at low prices and sell it at a high price, but the reality says different.
So from that I am not surprised that many traders fail in the world of trading. So My advice is to first learn the knowledge about risk
management, then you will easily become a successful trader. Because you don't can only rely on analysis and research on the market alone.

Diversifying everything and everywhere is probably the solution that is closest to perfect in a vacuum.You want to be minimizing variance of basically everything: regulations, trends, centralization, CEOs dying in a car crash and what not. For first, I keep my money on many exchanges as well as most of it in cold storage. Even if they are big and will not collapse after hack, it may take some time to do investigation and repay customers so you'd rather not be left without your money for a few months. Then diversifying your portfolio into different assets and then your strategies so they do not correlate too much. There is many places it can go wrong so if you give yourself the biggest possible amount of lottery tickets you gave the best chance no to leave empty handed.

First of all not have enough prediction knowledge basically cryptocurrency or trading i feel no need investment due to invest and loss they will be applied risk invest starting just small fund presumption have management knowledge. Moreover, it is better to stay away from investment.

Well, no matter how skilled a trader is without risk management, it will be fatal. because losses are a definite risk in the world of trading. only everyone is different when handling their loss. the point is we have to be wise in making decisions both when taking profits and targets in cut lost. And to be honest, I have never used a trading bot.

Having 10 years of trading experience will make you become a professional trader, and that is not easy to do because you need to have a big effort to always learn about trading every day.

I read about the article, but unfortunately, I don't use bots to trade. I prefer to trade manual so I can improve my skills to have better skills in the future. Besides that, I cannot always monitor the bots that I will use because I need to have a VPS which can run 24/7 every day. I don't trade every day, so that is why I don't use the bots.

Risk management is something that we must have besides money management so we can manage the money we will use in trading, and we can prevent the big risk that can happen while we trade. And I agree with your article, and the most important for me is having good control of the emotion will give us a chance to prevent the big risk.

Risk management is required in every trader but why it is so important? Risk management have connection with planning your trade. You cannot just execute your trade if you do not have plan. Identifying the risk and rewards ratio is part of risk management in order for us to know if the trade that we will do have higher risk or it will give higher rewards for us. If it will give higher rewards than risks then that trade will give benfits for us.

Diversification is a part of risk and management, we cannot just put our fund in one investment. Having risk and management will help us to diversify our funds. Those investors who do not diversify their funds are the one who keep losing in the market because of their good. The win that we can get if we will all in out funds in one investment is high but the lose that we can get is also high and that is why we should have proper risk and management to minimize our losses.

That's very true, most of the time traders know and understand the risk but they don't mind it that is why they lose. Though losing in trading is inevitable knowing that the price is very volatile but by effective analysis of the risk and managing it well can minimize losses. In trading, it is very important that your decisions are as reliable as possible by considering all the factors and risks to ensure good results.

Risk management is to reduce opportunity loss in big quality, this is the limit we can't pass or break. Some people avoid this knowledge because they don't want wasting time calculate the limit, this is valuable wasting time my friend. Risk management can running with disciplines and this is become our concern. People not break the limit but the change strategy in the middle of time without change the limit, that's also wrong. Trading is long journey, don't focus about profit only your safety asset is priority.

i just think saving is a safe way to produce even though indeed, inflation and interest rates greatly affect currency exchange rates. so i think saving and trading also have risks and in this case trading will indeed have a greater risk of loss compared to saving and all of that will be easily overcome when we know how to manage risk or control well

Every trader should be aware of risk management before picking interest in trading. Preferably taking courses on risk management should be considered an important part of understanding the act of trading. The diversification of assets is one of the ways to avoid losses although for the cryptocurrency industry, this technique is been misunderstood.

Assets that are related aren't worth diversifying since the market performance is directly influence by the same factor. Trading multiple altcoins is more risky than trading bitcoin or a particular Altcoin.  The whole concept of risk management is to avoid losses therefore anything that'll result to more losses than profit should be avoided by all course.

The used of advance trading tools like stop loss and buy limit can also be leverage on. The used of advance trading bot can also be considered if you're not an active trader constantly on your system 24 hours, 7 days a week monitoring the market.

Agree, risk management and analysis are always important factors that we should identify before we start trading on a target because as you say, this management allows us to see the chance of winning and the opportunity will be lost, a difference between these ratios, high rewards and low risks are what we should choose, instead of high rewards and high risks. And as soon as we know this ratio, we have more than half the chance to win while those who do not manage risk and rush to come, they are just risking their lives

Of course we must handle Trading Like a handle Business, as businsessman you must doing research the market, potential and maximize your strategy to get maximal profit, also don't forget to learning any skill, pemikiran, reading chart, also reading news.
Calculate any economyc issue is a good option too, like trump and iran right now, its give effect to real market.

The thing is betting your entire wad makes you feel good, especially if it comes off. You feel like the king of the world.

But eventually you will lose and lose the lot.

Risk management has two elements: 1) only bet 1/10th of your stash at a time 2) don't get greedy and take profits. In particular make sure you manage to withdraw your initial stake, so you are then only betting with your winnings.

I don't see any effect on Iran and Trump.

I mean, the "WWIII" is just an overstatement and I don't think it would be really that easy to just start like that. Iran dropped missiles in Iraq, the price did not drop at that point. In terms of risk management, people should really aware of how much they are spending or using in trading and investing. It is repetitive as it is but we should not invest what we can't afford.

I also comply with Iran and trump isn't any effect cryptocurrency trading they're a crucial matter because they need nothing to try to to with this market. the matter between the two countries is that they need to manage it and that they are against one another.

Indeed having our money go into multiple things will help us maximize profit and at the same time minimize the loss that we can possibly get because of the diversification that we make but of course this thing is the OP's strategy or risk management and people can have different ways to lessen our risk we only need to do is to research about our way of trading on how we will make it less risky so that we can have more profit. Experience will help us identify our own way of trading and our own way of risk management

Maybe taking courses is the missing part of my journey in trading, hmm. I just jumped into some random tutorials back in the day and did straight trading, although I agree that alts are riskier because they're pretty much drying up pretty quickly due to a lot of selling pressure rather than Bitcoin where there are pretty much many long-term hodlers.

Not really happen with war III because both countries never lost much money without get good feedback, look impossible they want attack each other without have good reason and why with world III, now look possibility seeing with country want to give space and available bitcoin become legal transaction payment and have get much benefit.

That is right and this is a good post OP. Risk management is a part of our daily life when we are going to decide. We should know what those possible consequences will may occur of what we have decided to do. One of these, is that being greedy of traders, self emotion which can distract your mind to think which better. But I will not agree on trade successfully, no one will get success in trading, it may you encounter to much pain and barrier before you will learn.

Risk:Reward (RR) ratio of each trade is something that I am trying to learn since years but I am still not so good at it because the fact is, we cannot control our greed which comes ahead of the reward we are already getting and that is where we stop our understanding of risks that lie in the trade while we wait longer and either lose what we have gained already or get stopped out. Patience is the key for most here but I follow RR system and if understood correctly, I don't guarantee high returns but better gains come through your way.

Everyone that was ever involved in any kind of investment knows that risk management is necessary. However, many are not aware of it and think they can avoid risk or they asses it in wrong way so the loss is often consequence of bad risk management.
Cryptocurrencies are special type of investment where risk is very much present, there is no guarantee for profit and you have to learn how to balance risk and your portfolio. But in that light I don't think that Iran and US situation poses some special risk to cryptocurrencies and I hope that will not turn over into some serious conflict.

That is a nice share of youtube video OP, that enlightened me on how to risk management will effectively work on.
In any form of investment, there should be a risk management because this is a part where you can avoid possible losses. And I think when it comes to crypto investment, you should give full risk management on it. Because it's kind of being highly volatile you might get a loss if you dont know how to manage risk. But being a successful trader, you need to face those barriers that probably you encounter in the future and never give up once you have been failed.

We are just be prepared for any circumstances that we ever face and brought into a challenge. In all businesses, trades and even to our daily activities it is been already involve risk. At all costs, we have nothing to worry about, we've been dealing this every day and we live it( and survive). It only we need to think wisely and be smart, we only suffer losses because of wrong decisions and that is what we need to work on to avoid from its recurrence.

Yeah, this had been part of our lives where risk and decisions do involved.If you dont know how to handle it out then you would surely get wrong decisions in life.

Risk management is great factor to those people who do involve when it comes to finances.Handling out risk on a volatile market wont really be that easy and without
having a proper plan nor analysis including risk management then you would surely mess up along the way.

Exactly, risk management is knowing your edges in handling your money. It is so easy to buy and sell but the mere fact is if wr don't know how to handle a certain fund and having no trading plan it maybe a cause of losing money. If we know how to have a proper risk management and a trade plan to entry it may lead us to be a successful trader.

 A good advice by the OP in my trading journey so far risk management was my first priority before taking any trade, this had well secured my portfolio in any eventuality of losing any trade calculating risk to reward ratio is so Paramount and key to be profitable in a long run even with a non perfect strategy of course their is no holy Grail trading strategy .

We should always consider risk management whenever we do any trade because we should always manage the profit whenever we see any downward trend in the market. Risk management and Fund management both these things should essentially used by the trader in order to control their losses.

I usually do not use any software to manage my risk. I also do not have fixed risk tolerance levels. because I usually judge the market every day as another day. For alts with high pumpability in the short term, I would take more risk than alts without good signals. but generally I do not let any trade lose more than 10%, because I always choose the best prices to order and when the price breaks the trend, I only lose about 2-4%. That is the effect of studying TA well and understanding it.

Trading is not for newbies and for those who dont have proper knowledge of that. Greatest risk is start trading with huge capital without having any knowledge of that. I prefer HODL over trading since there is very little risk involved in this strategy.
https://www.bitinsure.com/blog/?p=59 this link is asking for username/password.

One of the most important lesson I've learned from my mentor is to have diversification of assets. You must not lend your money into one coin but your should buy atleast 3. Just like with putting up a business, you should also look for other because if ever there is a doom for your business, there is always another one that will support your necessity.

Yes, it is tough and explaining the hardness of the trading journey to the new traders is tougher than this. The quick rick scheme is still dominant on the minds and people don't want to understand the fact: The easy money idea is the deal-breaker for the experienced traders and they always prefer to manage the risks with strong money management and diversification.

Most beginners will struggle in trading or even in business because they don't know how to diversify their money. This is how we should manage the risk of losing and this what they called as "plan B" or "in case of worst case scenario". This should be practiced by people who will decide to enter the market or the world of business.

Risk management is always an important phenomenon as it helps peoples to lose their funds in excess amount. Traders gain success in earning profits from the high volatile markets which gives them immense opportunities to quickly make profits even in the bear markets so trading with cryptocurrencies  have been profitable for most of the traders.

But, never forget that these high volatile markets might even make you loose all of your funds if you do not consider a proper risk management. I personally keep stop-loss as well as stop-profit for each of my trade. Prices might pump and then it might experience hard dump which might even keep you at risk so it is always better to set a proper exit point so that you do not experience the dump arriving after the pump. Setting up trading bots who would speculate the markets 24*7 for you would also be an good option in order to reduce the percentage of losses.

Trades only thinking about profit because his mind has been overcome by greed without thinking about the risk of being a bad thing for example he has a profit opportunity but because his mind only thinks of big profits then he delays to take profits then next time the price changes down then the profit opportunity is lost that is an example of trading  with a greedy strategy, so implementing risk management is important so as not loss
 and to lose profit opportunities

A good backup plan or you can say the plan B of trading is very compulsory. Trading is not traditional as other jobs. In this you do not always get what you actually think about. Instead of crying on our lose and completely blank mind you should use extra precaution and be more intelligence in the time of loss. The decision made at that time would predict your future, if you have a positive plan B, may be that return your whole loss, if you will sit blankly, mourning on your loss that would break your heart permanently from trading.

It's just how you manage the risk when investing in cryptocurrency even if the plan is not that perfect but with the perception that you want to minimize the risk losing your investment is a great way of thinking to a positive effect of your investment. Trading with care is just the same as handling your investment to a lesser risk.

In artiker, risk management, there is something meaningful to take risks in trading, sometimes this is what many people don't realize, including me when trading in the market.

What's interesting is, it needs to be changed to overcome failure.
Namely "emotional" will damage everything we dream of, emotions can make someone lose concentration, ambition, and greed, as mentioned in the article.

I just found out about this, which made me lose, in the future I will fix everything, for the sake of my success. Thank you for the article.

This is a normal situation with most of the traders. We might wait for a specific price to reach even though the price already is in the dip but our greed makes us wait for the price to drop a bit more. But eventually, the price starts growing back which never gave you an opportunity to buy at the drip. In this case, you could properly study the graph by adding some oscillators to the graphs which would make it easy for you to understand the entry and exit points. Then find some better points to enter and name them Target1, Target2, etc.

Now, you can start learning more about trailing as it would help you in this situation. As soon as the price hits the Target1, your orders should be set to Target2 setting stop-loss to Target1. This will never miss you the opportunity to buy at an appropriate price.

Honestly I did not use any device as a risk management. I will only set a price value bracket when to stop to invest. Like when the coin price value will fall more than 60% of your capital I think it is the time liquidate. And the best risk management that each of us can easily apply is fact that you need to invest the amount that are ready to loss.

Actually, only the ones who have the guts to face risks are the ones who usually have profits.

There are no profits in the markets if you do not want to face any risk. I might agree there would be some sources to earn passive income without any risk but usually the profits there would be much lower as well as it might anytime turn into a ponzi scheme. Talking about trading specifically, we do involve a lot of risk.

Even some people might purchase coins at the peak which itself bought them a risk to never see their portfolio grow again but this is case with minimum people. Most of the peoples who have spend their years into trading have now gained immense knowledge and might easily point out the peak or dip which gives them the opportunity to fill their bags as quickly as possible considering the risks.

In the real sense of it, your loss that you set should be worked with your balance because if you lose a greater percentage of your balance in a first trade and continuously losing such, you will see that your account will be off. At least 1 percent loss in your trade is recommended.

Well he did say that a major aspect of risk management is simply to put in money that you can afford to lose. So in cases where you become too careless or unlucky, which will cause big losses on your capital, it won't hurt you that much. It's just about looking a few steps ahead. It's easier to manage the risks if you're not that afraid of losing all your capital.

I have my own capital management strategy and it's quite risky. It seems that in my margin trading orders I never use stoploss. I learned about TA and realized that when its price reached the threshold and was about to reverse, I would enter the order. I don't use stoploss but only play for very small amounts, for example I have $ 100 then I only use $ 5 to bet. People often say I'm crazy but I don't think so. so many people have lost money because they put stoplosss too short and were hunted by sharks. so the strategy is to play with a small capital but hold a long position. The profit will certainly be greater than ever.

That's definitely true to be honest, without risk you can't basically gain any big amount of money especially in this domain despite the market is so volatile in most of times. Furthermore, there are three essential keys in trading, and they will certainly facilitate your success in this field.
- Taking the risk.
- Making different strategies and plans.
- Be patient especially in the worst situations.
And remember that with lack of knowledge you will gain nothing.
Plus, I don't believe in luck but with a hardwork and creativity.

It's also true that you said, we have to set target 1 or target 2 but I have failed when the market is bad due to lack of monitoring of market movements so I am late in making a decision to avoid defeat and as a trader it must have the ability to read the charts correctly and accurately because  luck alone is not enough

Every traders creating some different rules personally. But without risk management ultimately you cannot protect your loss. I agree that never used all of amount in one trade, i will spend 50% to 60% amount to buy coins. I following risk management if i am not a professional traders, i started from last year.

Risk management is very important to help reduces your loss in short term or long term trade.

50% -60% is very large, and if without cutloss at certain times then it will not be able to perform an optimal averaging process. various traders have different strategies and management, maybe indeed the allocation really makes you comfortable. My own risk management is almost similar to the comment above you, $ 20 for initial capital and the rest for leveraging at critical times

in fact having risk management is important because without thinking about risk and only thinking about profits, I think it's a mistake. some techniques already exist about risk management, only the application is still not able to be done by all traders, maybe because it is carried by the flow of profits, we forget the existing risk.

Yes, we should always have a plan B in case we need to face any loss. There always should be a backup plan which would save our money in case we are on an edge to have loss. Proper money management would always help us from facing higher losses as we would only loose the money we have excluded for a particular coin.

Markets are highly volatile which would never guarantee you profits but would also keep a constant risk of having loss and a back-up plan in this situation would be a life saver one. You could instantly change your trade if the price starts dropping by implying some of the useful strategies which would never make us bear any loss.

That's true if we will not make any plan about investment then it may go against us if we will make a proper plan about investing time then we can avoid so many things that make a common person who wants to be rich will avoid mistakes that we should keep away from us while being an investor. Crypto needs money and time management so it's important to have proper trading plan.

As long as it’s business that you’re talking about if you don’t know how to manage your risks then you’re likely to fail. Risks management is very important and will help your business to grow. And like you have said, trading bots are also not 100% reliable, you can lose your money. Some people sees trading bots as something that will make them make steady profit but that is not true.

There are also free trade bots and those ones are the worst, paid bots are the ones that are a bit better, but they still don’t make any sense because the losses you will see will be more than profit, so it’s better to do it yourself.

risk management must be owned by every trader, because this is one of the keys to success, of course we will be more careful every time we take action (buy, sell, or hold). I don't like using any software, just the classic trading that I always use. install three stages of buy order to avoid large dumps (that's it). at risk, there are usually benefits (i like it)

Trading without a stop loss is very risky and installing a stop loss too short is not a strong reason for that. When you put a stop loss too short then your trade analysis is still weak which means you still don't understand market movements. I think it's better to put a stop loss while learning from experience why the boundary you are bouncing back on, then later you will find the answer to your trading error trial, don't be someone who doesn't want to develop, dude.

The plan must be really mature and not to make wrong decisions, to avoid defeat we must monitor its progress at all times so as not to miss information because it influences what steps will be decided

Any investment which gives good returns also comes with risk so one who are tacking the issues well will make more reap.I just reduce my trading activities whenever there is uncertain condition on the bitcoin market,it doesn't make me lose on satoshi value so holding long the coins will give me the profits which equalize the loss if I met due to the price dumped.

what you said are pure facts and that was right  . all trader must need all of those you claim above so that they can adapt if what ever happen to the market  , they can adapt if what changes on the market strikes   . that was all part of the strategy   .  trading was risky but risk is manageable  if you learned how to do so  .  you will only minimize your risk but the losses were still there   . there isnt called a master on trading  that can perfect his trades  .

But those who come to trade at first will not have a strategy or even a concept such as realizing how important it is to manage risk and even we will realize it when we carry out this trading activity. So, to become a successful trader it will not be easy and without having enough experience, then we will not be a successful trader, how can a person or trader manage risk when they have no experience, because to have a strategy and a mature plan is about how high experience we have.

Market is unpredictable and minimize risk is important to save our asset, other benefits is make us stay realistic and disciplines with psychology trading. We can't avoid risk and manage it use stop loss, money management and investment program really helpful. Some people never use risk management and fail and that is not good story, use it so you can share and get solutions to change your strategy.

Before I started trading, a good friend of mine told me to at least record my trading history especially the ones that I have accumulated lost with. It helps knowing on which part I made a mistake either by overlooking the said item or being overconfident about my gut.

One risk management that I learned over the course of my experience is to aim for small trades with relatively small profit. Although the profit may be low compared to medium to big trades, I consider it 'safe' as I always have a safety margin of my resources whenever I trade.


The market may be unpredictable but there are tools that may support your forecast in the market. If the market is too risky, avoid going for big trades especially if you are uncomfortable with it. Also one thing to note, only trade the amount that you are willing to lose.

I also diversify my funds because it is part of my risk and management. I don't go all in one investment because it is too risky. I always diversify my funds even though the returns are only small because I want to protect. Imagine if we go all in to a specific cryptocurrency then what will happen to our funds if the market suddenly crashed? Of course we will suffer huge losses. But if we have proper risks and management where we diversify our funds we can avoid huge losses. Risk and management is important and it should be our focus when we are trading.

That is because we are not aware of the risk we are facing, we always says that in the things that we are doing, we are taking a risk in everything and we are ready for any losses, the thing is , we need to prepare not for having a loss but when the time comes that we already losing money, we need to have a plan on that too, whether should we stop trading or should we take the risk and try again, you choose.

I agree with you because the business will not be a loss if we do not fall behind If we see a lot of risks here then it is better to close the business for some time. Otherwise, you could lose all your money You can then restart by determining the cause of the damage But I think in business it is better to not use bots It is more likely to be risky.

when we don't understand what going on in markets we should never risk more knowing position sizing is very important we cannot trade with same position size in all condition , when markets are bad try to minimise risks or don't trade don't watch also 

use size in option is your analysis is right or size out if markets are not in your favour

To some, doing risk management is the same as breathing.

They already know what's up so they focus on what they can and what they can't do. With the market that we have, I doubt that we can be successful without it. Also, we have our own risk management, we don't know it just yet. When we are doubting a certain investment so we make small investments for a start.