Bitcoin Forum

successful trading is about managing risk minimising it as possible  as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules  are there to minimise risks

1.You can minimize risk by reducing the size of your portfolio.

Risk comes from the volatile altcoins that people become enthusiastic about and move on to those from bitcoin. They forget that bitcoin is what is going to be the biggest coin in the future and fall for the false promises of some shitcoin. So reduce your portfolio and keep bitcoin to the maximum if not 100%.

2. Move to other sectors that just cryptocurrencies. But this depends on your expertise. This helps mainly during the times when crypto is dumping and other market are rising.

3. The internet is full of paid media articles. Stop reading them and the reddit channels on crypto. Its more like breeding grounds for waste of time conspiracies there. Use your own research to develop your own charts and use them to buy/sell and observe how you progress.

Remember that trading is not everyone's ballgame. You may fail at which point it is wise to quit.

Do note that risk management is not a way to stop losses, but to minimize losses as much as possible. This doesn't mean that you would never take losses. There would naturally be times you would and the plan is to lessen the losses you could incur.

Some tips with Risk management is to always be alert regarding the changes in the market. Learn to determine whether a sudden pump is good news or bad news for you. There's also the idea of spreading thin your portfolio, so even if you do lose in every avenue, the losses are minimized since its pretty much distributed, compared to concentrating on one coin. The vice versa could be done as well, BUT you must be able to determine that the coin you would invest in would profit.

When we do talk about minimizing risk then there would be lots on the list.

1. Never be greedy
2. Set a specific goal/profit on a certain trade.
3. Dont chase losses
4. Set stop loss
5. Dont get fomo'ed or shilled out.
6. Dont be emotional.

These are only the basics but actually a hard thing to be done.

As you can see OP from all answers above, risk management is a hard thing to explain and to be honest with you, all these answers are good and could be seen as a risk management for different, let's call it "earning strategies" - trading, investing in ICO, gold, etc.

Risk management - (in my opinion) word to describe actions taken against losses.

As you said OP,


you have read about it and now wonder, what that is and how to apply it to your trading to be profitable?

Already one member answered, that you shouldn't be doing this, which is: "read to much BS on the internet".


This is really great advice because you can't apply risk management strategies from an article (written by a billion-dollar hedge fund manager) to your trading, this is something totally different, but as you can see, it has the same name.

The first and third answer, both good for every day trader (especially the third one),


OP, you can apply this to your trading to minimize risk and this would be good risk management, I hope this starts to slowly be clear?

If not, I will share what I personally do lately, to manage my risks in trading. I started to use, these new Binance pairs BULL, BEAR, ETHBULL & ETHBEAR when I try my luck with day trades or even swing trading. I try to hedge against (not so much) the risk itself, but the market volatility, especially, when on BTC and there could be FOMO in play (big news or event).

If you don't know what BULL, BEAR, ETHBULL & ETHBEAR is, here a short read: https://www.binance.com/en/support/articles/360038933471

As I already mentioned, when I am day trading and there is a big chance for the price of BTC to go up or down fast, I like to bet 15% on BULL or BEAR to hedge against the risks and market volatility, when I am gambling with more money than usual.

As you can see, everybody has to develop his own risk management strategy, which will be perfectly suited to what one is actually doing. I needed also a lot of time to understand it and be able to implement it to my trading and now I concentrate on how to maximize profits because everything is in our minds and if you will keep thinking about risk and losses, it could end up that way, despite best risk management strategy  ;).

Perhaps, you don't have to be greedy in taking profit so you can minimize the risk of losing the profit because we don't know if the price will increase more than the price now. It is better to close the trade by getting the profit while we still see it before the price goes down because after the price hits the higher price, it will go down, and sometimes, the price can get dump too deep. So before the situations change, we can use that time to sell the coins and wait for another time to repurchase the coin if the coin has the potential to increase back.

Well, every one of us has a technique and ideas about how to manage the risk. To be specific, we should have self-discipline in trading because it is a sort of gambling that perhaps you have to lose or win. The most important is to spend an amount that you can afford and that included not to become greedy at all. Next is, accept losses and never chase it and hoping to cover your entire losses because it will probably end up nothing if you continue doing that. Another one is stopping loss and take profit, diversification into stable coin is the best way to cut the losses. Indeed, research your own and dont rely upon other's suggestions.

First of all you have to be aware of your limits. Whatever you do, don't invest more than you can affor to lose. Always diversify your investment and never get greedy in times when you are doing good.
Don't ever treat trading as a gambling and don't rely on pure luck, that is a trap. And always be aware that you can't predict every situation and that surprises, especialy negative ones, are always possible.

This isn't the stock market. In the stock market you can choose between various industries and invest in real companies.

In crypto you can choose between Bitcoin and a ton of shitcoins. I wouldn't recommend anyone to buy shitcoins unless you accept that there is a very real possibility that you lose most of your money. If you purely focus on the charts, then it's clear that apart from a few newer coins, Bitcoin throughout the years has done better than the rest of the crypto market.

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I have zero risk management when it comes to my hodl stack, but have strict risk management for my speculation stack. I set myself target levels as to where I want to be out of the market, and this usually works pretty well for me. If needed, I'm happy to take a small loss in order to prevent further losses.

Furthermore I closely monitor the daily moving averages and enter/exit positions based on what I deem a change of behavior. My current position is well in the profit, but will exit the moment the price has closed or is about to close below the 21EMA. In this case I do not have a target level in mind to cash out at. I'll ride this run out as long as possible.

Basically, risk management is more for controlling yourself like keeping emotions, with you can control emotions so you will not panic and get greedy in trading. That way you will trade even better when facing prices that suddenly decline and suddenly increase, there is no need to make choices based solely on rumors because of the possibility of the market moving in the opposite direction.

Risk management always is a tough deal because we always feel to just go for little bit extra risk and that often turns out wrong. So for me the biggest advantage is FreshForex broker. Since through them there is 101% Tradable Deposit Bonus and that enables great working for me.

I agree with you that most of the time risk management is more on controlling yourself than following what the other says because in the first place you are the ones who is controlling the outcome of your choices. The more you get an experiences from your past the more you will know how to become a trader or to manage the risk of every investment you've made.

Best case of risk management would be basically preparing yourself for any movement at all, if you think bitcoin might fall you should do stop loss in order to stop from losing basically, the name gives away what it does, that way if you think bitcoin fall under certain support level and it may go even lower after that, you can put a stop loss right under the support level so if it ever reaches under that you will sell and when it goes even lower you will buy more.

You can do exactly the opposite on the other side as well, meaning if you think price will continue to go up after breaking the resistance, you will have a buy order there and as soon as it goes above that price you will buy and sell when it reaches the next resistance level, that is how it works for risk management.

Indeed very basic guidelines, but It's actually harder than you though it would be.
Greed has always been chasing before us, It's unavoidable not to be tempted by greed, specially we're dealing with money here. That's where the greed starts.
Not chasing losses and setting stop loss is somehow a character than can be easily obtained by any experienced traders. While, FOMOing is inevitable too when greed takes over you, and not only those traders with low experience could be fomoing but also the very experienced ones.
Emotion is always there, as human being, that can't be avoidable.
Sure this would really help to manage the level of risk and pressure, but then again, it's really hard to contain.

First thing you need divided your portfolio to different coins, means don't put your money in one basket. I will suggest at least trade with 4/5 coins (according to total portfolio). So even a coin start dump then you will not loss much.

Second thing use stop loss, if a coin start dump after you bought then sell in maximum 5% loss. Then wait for more down, and when you think should re enter then buy again. By this way you can increse your portfolio. Although its quite risky but no any other way if start dumping your bought coins.

Patience is most important on the trading. Besides greed is most dangerous as well. So you have to care about patience and greed. If you have good profits then just sell, its not necessary to wait for more gain. Who know if coin start dumping. So something is better than nothing.

I won't recommend this suggestion since it has to do with diversifying your investment which from previous studies has shown it's not the best form of risk management. Sure when the market condition is favourable, you're likely to make more profit but once the market becomes unfavorable, the rate at which you'll loss increases since all altcoins are related in regards to price movement of the market.

In risk management, making use of advance trading tools are the most effective way to my understanding in minimizing losses since the system will be automated meaning you won't have be active to make trades. Money management is also another factor which shouldn't be ignored since the market is a very emotional one which can lead you to investing more than you can handle. One of the precautions a trader should always make is, never invest (trading vcapital) more than he/she can handle in case of a bad trade as this helps the trader to stay calm and not panic.

It is about your risk appetite and also about how will you handle a certain risk. We should be aware that cryptocurrencies are risky investment and risk and management is important in order to minimize the risks that we can take if we invest our money. Many traders are just keep buying and selling without proper risk and management and it is a big problem because they cannot handle it very well that can lead to major losses.

What about planning and making strategies? If you know how to execute your plans properly then you have the urge to minimize your loss because of an error. Before you make a plan, you will have a plan B so that if the first plan fails, you have the second one. Also self-discipline is essential in this cases, proper management of accounts and portfolio will help you to get an idea about the next thing to do during trades. Always observe the price movement in the market and that will be the bases on your next transactions.

Is it true that people really sucks at making strategies and plans in trading? What do you think is the causes of this? Greediness? Lack of knowledge? I think the number one thing that makes them to fail in trading is that they don't seek advice first to the professionals because they have many experiences to manage risks. Risk management is very crucial when it comes to cryptocurrency so every one should be aware of that. Most especially the people who really want to reach their goals, they want to take the risk by investing their money.

 Things like this are given and actually are basic stuffs to remember when managing the risk. Just want to point out the Greediness, I mean it isn't the worst thing to contain when trading coz it can give you more than you wanted if handled properly in trading. Emotion, we've always talk about this one for the past years in trading on which everyone has to avoid including it with the present possession while trading coz it might lead to such emotion based decision.

This is the topmost and a must priority on minimizing the risk in trading. Set your ending, always have the finish line in every situation where you will stop winning or losing neither of the two. As a matter of fact setting a stop loss is really helpful especially when you don't have much spare in trading.

Indeed and by that thing i can proudly say that i have manage to lessen and handle well all the risk i have been taking and i think the most important two word you need to do in order to avoid or lessen risk here in crypto world is to set goal, by setting a goal you will not do something without a purpose which leads to better decision because of the path you are taking and also this will help you stop greediness.

Studying is the best way to lessen any risks in trading. What to study? Those market / cryptocurrency you want to enter or invest in. Although studying and researching takes a lot of time and requires huge amount of patience, it would be worth it, as knowledge is your only tool to manage risks. Other than that, experiences would lead you to your best mentality and management in trading.

I suggest take time first to study the market you are entering and how to trade well, then take trading simulations to somehow have a little experience. And then try to invest and let your experience shape you.

- In Trading the risk management varies according to the person, it influences many factors, even the emotional part, but leaving all these things aside, what works in trading is the following:

- If you risk enough balance or money, your earnings may be few, but after all they are profits.

- If you start with a low balance, whatever the reason, getting profits will not be very high, but all this adds up, it is beneficial.

You can not think of getting rich overnight, many mistakes of those who begin in this world, when failures appear usually withdraw.

My way of trading is making only 3 trades, where in those 3 if I lose 2, with 1 recovery and I remain in positive balance, of course that if you lose in the 3 you must change the plan, and not lose more than 10% .

Even though we get much experienced or professional but yet, risk management would be an important subject for us unless and until we are linked with cryptocurrency trading. Crypto markets are much volatile which might show us huge profits but at the same time we can even face loss in the same manner.

The markets quickly move up and down which might not even give us the moment to sell of our coins at some stop loss. That's why setting a stop-loss each time your place a sell order is much necessary so that you would not have to face excess loss. You should have some backup plans in order to save your loss and quickly convert it into profits.

I don't agree with your first point. If you want to play safe then why 'cryptocurrencies'? Several financial experts have rated cryptocurrencies as the most risky type of investment. Investing in cryptocurrencies itself means that you have put your money on risk. Playing too safe like creating sell orders at buy price plus 1-2% or creating stop loss at -(2-3%) don't work in crypto market.

Here you have to take bigger risk to earn big and there is always the equal chance of losing money.

The only risk management in trading that I know much about is that of Patience. Many traders start the loses because of them lacking the basis of trading, which is the mindset to be patients while they trade. Basically, this is one of my secret to trade and have never disappointed me either from the beginning. Shirt and long-term trade are very much possible if traders imbibe the habit of be Patience towards their trades. No other risk management than this, that works for me through last year 2019 till date 2020.

I also want to add setting up your limitations. Trading is not like gambling so you need to prepare even for its worst. Invest only what you can afford to lose and learn to make stop loss when you think you are losing already. Trading will be more risky if you only trade without even knowing your target goal in the first place.

Risk management can't just of simple talks and yet, it tested us when we are facing on it. May we could say it was easy to handle and manage risk but if we are in the actual scenario you can definitely say that was really really hard especially when you are deeply in trouble and can't even think the right thing to do. The only thing that I may see that could help us on how to manage risk is that we don't need to be rush, think wisely and act accordingly of what you think is right and appropriate to a certain thing. And the most important thing is that we have a concrete plan and follow it, and everything will be fine.

In including into the cryptocurrency world, we are always facing the full of risk because most of the time, when we invest, we are risking our money because we cannot assure that the price of the coin will continuously be increasing. Also in trading we have a lot of risk by predicting the market price of the currency we are waging our money and the only chance of having a good income is just only fifty percent but always make sure all of we made that is related in the cryptocurrency is monitored and safe to avoid loss of profit.

In reality it is not easy, risk management is what we need specially if we are trading cryptocurrencies. I do not trade without proper risk management, I already know thr consequences if we do not have it. I experienced to have huge losses because I do not consider the risk and management before. I just trading without it that makes me vulnerable to losses. I cannot turn back time and it alrrady happened but I will never forget the knowledge that I get from my past trades.

They say the higher the risk the more profitable it could possibly be.
But I doubt that already from the start.

Minimizing risk is something that could be done with a deeper kind of digging with every coin that you will buy.
First, choose them wisely.
Don't go barging into new ones without even asking some people about it or even the management behind it.
If you choose the popular ones though, you have already cut some risk into it.
Pick the right ones only, you do not want to have a long list of different coins which you could not administer anymore.

Well it's up to you but you can do a 1:4 ratio of risk and reward ratio (I think it's the most common) where in you will risk 1% in order to win 4% so let's say that you have bought bitcoin @$0.1 then you should sell it if it becomes $0.09 and sell it if you meet the $0.14.

You can target more profit like 1:5 or up however the safe place is the 4 but it's up to you the higher the better but keep in mind that you should jump after you lose 1% well this is according to what I've read a few months back on an online course.

To minimize the risks, diversify your portfolio in smaller parts like 5% to 10% and only invest those amounts in any trade you want to perform. This would help you save excess loss and would also keep on giving you profits. You can even invest in variety of coins by this method because you would really save a lot of your capital in order to get your hands on maximum coins.

The more coins you buy, the more profits you might afford collecting but you need to set stop-loss for each coins because we would never know when can the price dump. Being patient and entering the markets at correct time might lead you to quickly make profits but always remember that you should never enter a market if it seems like a wrong entry point. Never check your luck at these times.

Before stop loss, I think there is a trading pattern or strategy that is paramount to be successful. This is reducing our lot size that we want to trade with. The higher risk we take to gain is also how our accounts would be blown up if anything goes wrong. So if we take our trade gradually, we will keep accumulating profit.

Reducing the size of your portfolio is indeed one of the best way to reduce the risk of losing your money, Just focus on coins that actually have a good reputation like bitcoin, eth or xrp. Reducing your portfolio will make it easier to manage and I'm sure it will be easy to have on profit on those coins.

I have a tip for all of you guys, Buy low and buy even lower. If your trade is losing, instead of waiting you can buy on the dip, in this way you can maximize your profit if the coin started to pump.

It is a gonna be a big challenge but yet, can be manageable. It is only hard when we are not in control of ourselves and not knowing what exactly we are doing. Because in the first place, this is the thing we need to know before investing crypto but yet, we never thought like that as we know that it can be fine all the way to go. But it won't go so easy and the market becomes volatile which makes people get hard in dealing with the risk that comes to them.

Risk management can be of long-term work, not just of today or tomorrow but it gonna be needed all the time until we end our crypto journey. All I can say is that we need to think twice and ask help in a situation that we are undecided and really hard to decide as well.

The methods/rules to minimize risks:
1. Don't use big money to trade if you don't know how to trade with the right.
2. Select the coin, which is in the top 50 coins, so that you can analyze the moves of the coins.
3. Don't greedy to try to make a bigger profit if the situations are unpredicted.
4. Take your profit while you can, and don't wait for another bigger profit because that will not always happen.
5. Leave the market if you think the market cannot move well.
6. Don't force yourself to trade if the coin already moves to the higher price.
7. Don't forget to analyze the coins moves before you buy, and don't panic to buy or sell if the price of the coin is moved.

I think that is some of the methods that you can use to minimize the risks. I think the other members already share their method to reduce the risks, and I am sure that you already know or have your way to prevent the big risks.

Risk management could be overdone as well and should be really careful about it. Nobody wants to lose money, nobody wants to buy a coin and watch it go down, that is not something people would practically do since it is basically the most easiest way to lose money, however that could be the biggest trouble but not the only one.

The coins you didn't buy because of risk management could be a trouble as well, what if the coin you wanted to buy but wasn't certain suddenly makes 20%+ increase in price?

Those are missed chances and loss on profit that you never really considered before. Even Warren Buffet himself said multiple times that he wasn't really upset over the money they lost, but upset over money they could have made because risk management was overdone on them.

I think it’s important for you to understand that most strategies that really make a profit will not work if many people use them. Therefore, people who find such strategies in 99% of cases do not talk about it.
Therefore, for myself, I see the only way out - to monitor the market and try to find my own strategies that will work.

Strategies will work for people who are holding efficiently in the market during at the time of fluctuations, strategies will not work on a daily basis and in some cases, we have to consider the market situations based on that we will make profits. Risk management is a completely different kind of management where we should cover it when we are in loos.

Risk management is the most important thing about trading. If you do not have to follow risk management, you can face huge losses. The first thing you need to do is to share your funds. Will ever do a trade with all the funds. Divide your funds into different coins. Because if one trade goes negative and another may recover your loss. Many traders make a mistake. They buy a coin with all their funds. As a result, if the value of the coin goes down, then they are lose their own all funds.

Diversifying is good but make it sure that you would choose the best among the rest rather than risking your money into
small or little cap coins because you do hope for some pump but thats really a gamble thing.Risk management is crucial
or really needed not only on trading but in all sorts of investment.If you dont have this thing then expect for losses or negative impacts.

There are a lot of strategies and even individual strategies which might make us recover the loss and might even give us benefits on a daily basis. I am a day trader and I am successfully able to make profits from day trading by following few strategies and implying few patterns on 1 minute and 5 minute graph. Risk management would always include pre-investment precautions as well as post-investment precautions.

These might include your immense knowledge and also the strategies you use to make profits from the markets. It is not necessary that each time we end up in profits, most of the times we even need to face loss and that is the time when we could apply our own strategies to make profits from both the sides of the markets.

First of all you will need to choose the best coin there is.
You already avoided a lot of risk from doing that.

Mostly, I do see new traders picking the cheapest coin but there is not much anymore who can improve their value even after a year.
So maybe something like the top 10 in coinmarketcap will do.
I always choose to profit with what I am trading and not with conversion of USD.
That way, I could still make something out of just a little bump in price.
There is higher risk but the return could be greater in the long run.

This is the first and foremost mistakes every newbie traders ever make. They calculate profits before investing into the coin which makes them invest maximum or entire of their capital into one single coin just because their greedy mind said so. Most of them might end up having loss and coins with negative prices.

There are few coins which move in alternative direction of bitcoins or any other coins and holding 50-50 of these coins might be good in order to not have loss even if any one of those coins goes down. Profits are easy but it also brings a lot of risk for each one of us. Those who are ready to take the risk are the ones who fill their bags with profits.

When we do divide out capital then it do also divides the risk involved in regards to our investment and as said where incase we do lost
or on negative on a certain coin yet we do still have chance to recover or break even our losses when we do talk about possibility of
profits on the other coin on which we do invest and thats the advantage but also make it sure that we are investing into potential coins
for us to have that high possibility, if not then it would just worsen up the situation.

This decision may have some type of cons, because if Bitcoin falls in price, all Altcoin will bleed a lot and with large percentages, unless a short trade is made. That way you can win, I rely on the premise that the only currency that has a life of its own is Bitcoin and that everyone follows is Bitcoin. However, the cryptocurrency diversification advice in some scenarios is feasible, especially when Bitcoin is in an bullish trend.

For risk management you may want to consider combining all of your orders with a stop order and take profit order.

Stop order limits your loss and take profit locks in your profits.

Some exchanges will allow you to automatically submit stop orders along with your orders.

One that does this is mushino (https://mushino.com)., other I believe is Blade.exchange (https://www.blade.exchange/).

There are many tools to reduce risks. However, only a few will show working capacity for each individual trading strategy.
By and large, your main task is to reduce risks where they can be reduced and to risk where it is not necessary.
For me personally, the main places for risk reduction were psychology and financial management.

As part of psychology, I used strategies that helped me keep my emotions in check while preventing unnecessary movements and mistakes.
As part of financial management, I determined the size of the deposit and the size of the sub-deposit with which I could trade.
I have always tried to act within the framework of the deposits I have previously determined.

Exactly, people are very keen to make a profit on every trade they place, but sometime we have to face challenges even though we are very experienced. Based on the market situation we should always implement different strategies in order to overcome our loss. That's why we should always monitor the market and based on that we should act.

That makes some people are greedy to chase the profit even if they know that the current market still unpredictable. They forgot that the market could move anywhere, even if they already make a prediction. The market situations will always change every day, and if we don't analyze to make a prediction, we cannot get a low price to buy. Risk management will be a must that we should have to prevent the loss, so we can always remember that we need to follow the market moves.

Controlling our emotions is somewhat like we are also reducing risk. Yet, emotional conditions can't easily manage nor to be controlled all the time.
Risk management is a big challenge to everyone and I don't need tools to help with but it all purely in our decision and being proactive at all times. It is quite to see people suffer big losses is not because they can't manage to handle the risk in here but it is all how they manage their investment along the way.
 

Cryptocurrency markets are most unpredictable. Their high volatility nature can make them move in any direction in huge volume. A lot of people usually go for panic sell once they start seeing the price going in opposite direction with huge volume. This is where they have to face excess loss.

A proper risk management would never allow you to panic sell your coins. Instead setting a stop-loss would only give you minimum loss even if you failed to predict the further movement of the charts. We can see that BTC markets move across $500 - $1000 in a single day and that can be dangerous sometimes as the price might quickly move in negative direction in just few minutes if you fail to speculate the graph continuously. At this time, stop-loss would be a life saver.

The best option for anyone to manage their risk would be divesting into many many things instead of just investing into one thing.

For example, I have some money in savings account gaining interest, I have some wave, I have some bitcoin, I have a bit of ethereum and I am looking into buying couple of websites that are making profits as well, that way I make sure that I will always make money somewhere even if I lose money anywhere else.

Next stop, after all of this will be gold and real estate, I know gold is easier because you buy a little bit of it (not physical gold itself but gold account on bank) but real estate will be the hardest one, if I could get just a small tiny shop that I can rent out to, I will be set for life with all of the investments combined together, I know that. That is the best risk management you can do.

There are a lot of ways to minimize risk in trading. If me i only use what i know which is like martingale, so if the coin dumped again i wait for good price to buy back and maybe with that can minimize my losses, in case coins that i bought not a dead coin.

Risk management would always be one of the most important aspect to study no matter how experienced you turn. You always need to plan a better risk management so that you can minimize loss each time price rallies in opposite direction. Some of the most common risk management would be to set a stop loss, trade with less than 5% of your total capital, also set stop-profit, never go for the trade if you feel like the graph might bounce back anytime.

You would also need to sharpen your trading skills in order to study more about risk management. A proper risk management would never make you have excess loss no matter how fast the price moves in opposite direction.

I'm not sure about that particular strategy as what I understand with martingale once being used inside gambling you'll keep doubling your money until you win, inside trading you need to have better understanding before you can choose which coins to invest. You cannot do martingale since the directions of each coins is unpredictable you are prone to lose most of the time as there are many shit coins around.

If myself use an additional method to minimize risk set stop loss every time buy a coin to prevent the price down suddenly and not over trade because not good for psychology

Right, set a stop loss will be the main part and of course risk management in trading has many factors that are of serious concern and including emotional control and patience we should also be aware of because situations and conditions are not always fixed in trading so that requires us aware of the small things though. We cannot ignore the slightest factor there because after all risk management in trading is not just about paying attention to charts for profit and loss.

I'd recommend to make a structured plan with trading schedule and limits. To identify the max drawdown, the number of losing trades etc. These are the basics of RM to start with. Also, you may try the software to help you in it (automatization of risk management):

[b https://www.bitinsure.com/
[/b]
It is an automated risk monitor. I set the limits like max drawdown and other options at several Bitmex accounts and Bitinsure sends a notification since the limit is reached. This way I can have a rest and get notified when sth goes wrong. Also, it provides automated statistics reporting. This thing is useful for trades analysis

https://i.postimg.cc/SKs5XCBQ/Bitinsureee.jpg (https://postimages.org/)


Also, try to learn about money management. It works along with risk management to multiply the capital.

Good luck!

Then trying to find your own strategy that works is how those 99% of traders have struggled with their trade before being successful and would not share easily or try to open a signal group.
Most of the strategy are worked on for better trading.

The main point over here is not to be reckless. Being cautious and concerned about the market will help you reduce your risk. Secondly, you can reduce your risks if you go through the market and invest on selected well known coins only rather than investing on hundreds of different altcoin. If you go for lots of different altcoins, then there is high chance of you investing on a shitcoin. Keep yourself updated with the market. Manage your investment carefully. Understanding the risks and outcomes of different situation and how to handle them also falls on the risk management steps.

By it means of having discipline it makes you help to lessen the risk by being a carefully especially when monitoring the market. And to manage risk you need to be aware to always checked the monitor for every changes happen. Also you must understand about the possible outcome everytime you do trading and to find out the mistake you do, and when you encouter again your rwady to handle it.

You can invest only on those well developed coins and if possible, focus more on bitcoin to maximize your portfolio and never waste your money on those newly discovered altcoins that will only live short time and die eventually. And when you see you are starting to make profits, don't be greedy. And do not stop on making research to discover your own strategies to make profits and not just rely on some other's failed strategies. Learn to work for it.

Yes, indeed we need to managed the number of risk in trading to prevent of big loss of savings. Base on my experience I will shared my tips. First, before we take a risk we need to plan to prevent the losses of all traders, because in planning we can make sure of our winning in trading. Second, we need to know on what is bull market and bear market because it is a secret recipe to earned profit in trading. Third, never be a greedy trader and emotional because a greedy trader won't never earned a profit and could be possible to a big loss of profit. All my tips is just my own experience, but you can developed your own risk management that will suited you and can help you to earned profit in trading.

This is what I must do to minimize risk, from my experience if you want to manage your risk that means you have to manage your capital too.

Diversification of investment is an easy and common thing to do for management so that it produces less risk. There is more about the place of investment with a small risk level and some other calculations that involve your finances. You also have to maintain the stability of your portfolio every day, because if you speak at the level of crypto volatility then it must be done.

I speak outside of a person's lack of psychology because everyone has different conditions so in my opinion only you can seek from solutions related to how to manage risk.

For me to manage the risk you need lower your invest, but before that  know your investment if its have potential to grow. And when you find out it is a good investment you dont need to invest all you money, even you know there possibility you get huge profit. Its better to split your money because is to risky to put it all never ever put all your money in one investment because that is not a good players do, putting all your money foe me is what you doing is no knowledge or learnings at all.

"Dont put your eggs on one basket"

This had always been an effective thing on investment world and talking about risk management then this one is ideal because you've divided up the risk into various numbers or parts.
Any investment do have its ups and downs and when you do have the option for some recovery then it wont really be that hard for you to get up even you experience losses.
Unlike on having a single investment failure will really be hard to get up if there are no other sources you are getting into.

Not directly related though. Risk often increases without the increase or decrease of capital. Mitigating risk by increasing capital is like Martingale in gambling which is going to fail unless you stop at one point.

But few people do it. Also dont get me wrong. I meant diversification in different sectors (like commodities, stocks, gold etc) not altcoins. Among crypto your lions share or 100% of assets should be bitcoin. Forget about altcoins.

The whole volatility issue of bitcoin is an exaggeration. Those who watch the markets know how much volatility occurs and it usually ranges less than 5% every 24hours. It is more often seen when big news happen or a huge dump which was not predicted. You dont have to believe me, because you can verify it from the charts yourself.

Risk managment with cryptocurrency is something tricky.

Standard strategies aren't very useful. It's impossible to diversify within the crypto economy as every single asset in it has huge correlation with BTC.
Also, risk factors are very different. One should stay away from cryptocoins with old and weak networks, or ICOs that are very speculative and with no real work behind them. The characteristics to look out for also vary depending on the type of crypto. Ethereum tokens have different technical challenges from coins with their own blockchain.

If you ask me, it's more about studying technical parameters if you want to compare crypto assets. Sadly or not, there's no market and board overlooking listings in crypto exchanges. Any project could turn scam except community based ones like LTC/BTC etc. Large projects that are run privately are a larger risk. See TRON, crypto.com, Ripple etc.

that if you are going to invest on other type of assets and not just on crypto because here on crypto once one major crypto is down others will follow too   .   diversifying fund on crypto is not really effective imo  so its better if will only foccus on one major crypto asset so that we can get the most our of it  .  in my case i diversify by buying gold and other natural metals and then i pick bitcoin as my crypto investment   . this is my way of managing the risk or reducing the risk   . so far so good

There's no correct risk management because reduce risk is depend your target, make it realistic and can accepted in your mind if fails. Many strategy fail not because don't know how to use it but replace imagination in their calculation, wrong place my friend. If you are daily trader use 3% - 5% as your daily target and set your risk below it, don't make it too far because market is unpredictable.

You must accept that there is a risk in everything. The higher the money you put on the higher higher the risk but the higher the profit. In trading do not let your emotions control you. Just keep calm. Maybe one way of risk management is that determine the risk. Is it financial risk ? Or is it your strategy that is risky ? Is it the exchange rate ? Or maybe country risk ? After you identify, of course you can find countermeasures to avoid the risk. With crypto, it is additional thing to be learned since it is different from our paper money. We must really know first its nature before entering trading.

You know im not expert in trading but for me the most important is self discipline because if you don't have such manner you can't avoid risky situation .i actually don't believe in strategies because it's still useless if you don't know how to set your limitations spending money through everything. 

When you see the market is unpredicted, it is better to leave the market for a while so you can reduce the risk a lot. You will never know when the market will be back at a higher price, but if you can hold yourself for trading because the situations are not good, you will not regret it if the market is going down for more. The risk management is how we can manage how much money we use for trading, and we don't have to force ourselves to try to buy the coin if the market is still unpredicted.

Many people ask similar question, how to do this or how to that, and we see similar answers along with links to some sites that offers to do a job for you, all you need to do is to pay for that. About this specific matter, risk management, there is a simple answer, it's knowledge. You need to cross the street, do you know what you need to do? How did you learn that? When you plan to cross a highway do you need to be extra careful because there are more cars and risk is higher because of that?
It's the same in trading, you need to know where are you going (your final goals, to earn dollars or more bitcoins, or other alts), you need to know pairs, fees, and same as you do when you are crossing a street you need to look left and right and to see what is coming. Where do you find information, where do you look is the most important in trading, finding the best source of info about your trading pair is essential. Educate yourself, learn more and it's how you reduce the risk. When you don't have that it can be like crossing a highway, blindfolded!

Yeah, it's kinda risk management in overall, but in trading, you should be more practical especially if you really started trade frequently.
Strategies also work in trading, you should also got that beside your risk management.
A good risk management like having a risk:reward ratio for every trade you make and have strict plan when to take profits, cut loss or enter the trade.

The strategy is not everything but an experience everything, is it?

I have a friend and I can say him as an expert to trade, so I decided to learn about trading to him. But, he didn't give any knowledge to me, he just suggesting to read about technical analyst and fundamental analyst by myself. Because he said, in the trading field you can rely on the strategy, sometime the strategy will kill you, but you must make an evaluation with every trade you made. Through this thing you will aware about trading as a whole, and also I was aware that strategy can came when I'm trading.

If you are beginner take courses and join some group to raise your knowledge and strategy. Expert can do more dangerous than us, they like challenge their skill and emotion by replace strategy without risk management but always use little money to test it. So. risk management is depend trader/ investor character. I can't recommended any strategy because every trader/ investor free to decide which one is better but the rules is always same, set it before enter the market, don't ignore it.

You can minimise risk if you buy only the popular coins that you can trade everyday so that you get profit. Coins that popular are profitable don't buy coins that you know that you can lose your money there l. Be smart and choose wisely before you gonna buy coins that you want to trade.

There's no way you'll know that you're going to lose your money on a certain coin. Investing is similar to gambling, though they have different level of risks, but the result is uncertain on whether you will lose your money or you'll get a profit. Choosing to buy top coins in the market doesn't guarantee you a profit either, it's still up to you how you manage your investments. Therefore, to reduced the risks on your investment, you need experience, research, and high level of risk tolerance.

Experience is one of the main factors that would really help a certain individual to improve himself.Managing risk isnt really easy and you wont
able to create one if you havent encounter such situations and its a must thing if you do like to sustain into this market.It all matters with taking risk
for us to earn or profit and yes its similar to gambling but this one do have high chances on making money if you've done well into your analysis.
Easy to say but actually hard to attain such skills.

I do say this to people but I don't think we should always stick to them.

If you really are taking care of your balance, you should really stick to them but you should have the knowledge of investing and trading them since they are popular, the volatility is much higher than those lower altcoins. Since you are already taking a risk just by investing in cryptocurrencies, take a step further by investing in some good altcoin. As I always said, gain knowledge since that will really help you become a successful trader or investor.

Risk management will help you to minimize your loss, but it’s not a guarantee that you’re going to be making profit. You’re applying risk management in case of when you’re in the wrong position so that you will be able to escape from it. Someone mentioned that you have to reduce the number of coins you have on your portfolio and I second (support) that he’s right. Some people are just so dumb that they invest in like twenty cryptocurrencies and even more coins that can’t keep track of.

How do you invest in so much markets when you know that there is no possibility that you can follow up with all of them? It is not good. Bitcoin and Ethereum might be going up but other coins you have invested in might crash and disappoint you and you will lose everything you have.

It is best to invest in few coins that you can easily capture, even investing only in bitcoin is good. You should also look into other investments that are not cryptocurrency.

Risk management includes learning to trade well. Learning how to read the charts by doing so means you can calculate whether to go long or short. You will only appear greedy when you don't know when to exit your trade, when you see the chart that the market is almost going to burnout you can calculate and sell and wait again. You will only realize you being greedy when you lose the trade because of greed or simply chasing the pump when its already about to dip.

But in the bear market, it still difficult to minimize the risk even if we only buy popular coins because popular coins cannot always give the profit. You can see it's happening with bitcoin, and this month, bitcoin is not showing good progress to increase higher, but it is down deeper and back to $8k. To minimize the risk will need more attention because it is not about how much money you will use to buy the coin, but it is also related to what coins you pick in the market to trade and not just about choose the popular coins.

Best one known is honestly stop loss. At least with stop loss you can make your investments with some sort of guarantee that you will not lose too much. Of course you should invest into things with a lot more research and never put money you can't afford to lose into bitcoin or crypto in general however if you do all of that and you are still not sure about what will happen, the last line of defense should be stop loss.

With all the information you have and investing into stuff you are aware yourself that would mean that you could probably make money and even if you lose money you can wait until the tide turns since you can afford it or otherwise you would at least have stop loss, so it is the best one known right now.

Risk minimization is probably one of the most important topics in the ranking. After all, how much your risks are balanced directly affects the amount of profit that you ultimately get.
The most important things in risk management are working with errors and minimizing their consequences.

As a rule, errors occur most often due to psychological conditions, in other words, when you are emotionally involved in trading.
The first thing you should do in the process of your training in trading is to work with your emotional states, because it depends on him how your thinking will work, interruptions and mistakes, or clearly and harmoniously.

It is more in terms of how to manage risk and not how to evaluate losses based on errors. I think you got something wrong there. Correction of errors are for post-trading evaluation.

You manage risk by doing research on the projects you are investing in and their regular reports to keep track of their growth and development. Investors want a good quarterly report nothing more.

Errors cannot be judged like that. It is easy to judge them after committing them but not always possible to change the outcome when the event is actually occurring.
 
If a person is not emotionally well, why would they trade. Of course here comes the question of people who are trying to get rich quick and those who are professionally trading everyday.

Not everyone is good enough to manage risks in this market because greed is an inevitable thing when choosing to invest. I have had these thoughts in the past and it is difficult to apply because if the market goes up you will never want to sell the coin you are holding.

When I understood, it was too late because the market is now very difficult to predict and no longer increase as before.

Discipline is the power to win in this market but not everyone can do this because the crypto market fluctuates very quickly. Anyone has made a lot of mistakes, but if you take it as a lesson, you will surely gain a lot of new knowledge.

Risk management is not difficult but it depends on your decision because the crypto market is often difficult to predict.

I have highlighted several rules that help to save my money while trading:

- I never trade in a state of rage after an unsuccessfully closed deal, as trading in such a psychological state very often leads to serious mistakes.

- Every new deal has nothing to do with my past deals. The result of any deal cannot be determined.

- I clearly understand how much money I can use in one deal and how much interest I am willing to lose if the price of an asset goes in the opposite direction to my expectations.

- I only enter into a deal when I see a clear trend and pattern. If I am in doubt, I simply do not open a position.

Right now the only risk is chance of going down. Market is recovering though the world will take longer time to recover.

If you really do that then you will never be able to make a proper sane decision on how to buy or sell. Anything can happen but just because a pandemic is currently happening does not mean it will happen every other year. But the market will have a bad effect on the economy. There can be calculated risks but not an overtly outlier risk calculation.

It seems ideal that way but it is way more complicated if you jump into the real thing even with a lot of analysis and charts at hand. ;)

I am currently trying out my new account, it works quite well. It is a 2% and 6% rule, I have read this rule of a legendary trader Alexander Elder. He is one of my inspirations in trading and his method is very effective. But to accomplish this method, we need to have a strong mentality and perseverance.
2% means that in 1 time of your trade, you must only lose no more than 2% of your total account. and if you're constantly losing money and find your account has dropped 6%, it's time to take a break and review your trading method.

There could be multiple strategies to control and to handle risks effectively while trading but what I am following in my own trades is, risking only up to 10% of my available capital. Yes, I do set my stop-losses levels only up to 10% of my capital regardless of where is my target levels will be. I have seen people who adjust stop-loss levels based on targets like if a signal is about 20% of profits then they start think about stop loss up to 20% and when market is reaching those 20% of stop loss levels.

But, I do not change my policy of setting stop loss regardless of what signals are suggesting. This helps me to close the trades when market is doing against me like I do not need to wait more but I may start another trade to compensate my previous trades. I believe this is all about how we treat the unexpected losses and how we maximizing the chances to get us into profit zones.

Minimising risk is a factor that's in every's trader/investor's mind. After all, nobody wants to add money to a collective with increased risks of failure to generate value for that investment. So calculating the risk before entering into an agreement be it trading, bonds and other similar services is unsurprisingly very valuable and a duty everyone should comply. In my trading strategy as well as other investments I always go for a reduced risk with almost guaranteed return (i.e. interest).

However the risk management strategies used by one individual may not apply to the rest of investors like a whale or even a moderate level investor, so choosing how to manage your own is crucial to this business. Having said this there are some common strategies that people can apply but I personally only apply what I experienced.

That is what stop loss is usually about, if it looks like a coin is about to go up and it doesn't, it rarely ever goes down under 10% and that means if it does, that is a whole market crash.

Let's say there is a coin that worths 10 bucks, you buy it expecting it go to 12-13 dollars or even maybe higher soon, if it goes under 9 dollars very quickly, that usually indicates a whole market crash, at the very worst case it should go down to 9.50 levels without anything major going on, why would anything go down more than 10% if there is nothing major going on, there is no reason for it to go down that much, hence the stop loss.

However do not forget to put buy orders as well at support locations, that helps a lot as well and that way you can get rid of it when it breaks support, and you can rebuy at the next support.

It depends on which coin you are trading into because we know that 10% movement on daily basis can really be triggered on but it would always depend on the market condition just like what we are seeing now where price
can play between 2-5% in 24 timeframe.Setting stop loss of 10% would really be recommendable in times like these but for those days where volatility intensity is high then its better not to put it up yet it can
easily be triggered  or hit on.There are indeed several ways on reducing risk but managing or selecting which one would be used will be our job because not all things will work the same as others.

Honestly I never think about setting up stoploss for my trades because I am trading only bitcoins. Whenever market is going against my prediction, I will just change my positions into holding this way I am managing all may risks associated with my trading. I guess people can easily get rid of risk levels in their trading by simply choosing highly recommended assets like bitcoins. Because, you will be getting second chance like converting your trades into holding instead of booking losses.

Other than converting open position into holding for long-term, I am not having any special strategy for risk management. Still, I am booking profits on each and every trade but in long a time frame.

- Never trade with what you can afford to lose.
- Never risk more than 5% of your portfolio in a single trade, don't open multiple positions if you are not sure about diversification of your assets.
- Never lose more than 20% of your risked portfolio (i.e. 5% that I told you before)
- Never trade what you don't know anything about. You need to have some brief knowledge about a project to trade it.

This is my personal first rule before trading. No selling of houses and titles, no pawning, not losing anything tangible but money.
Well it depends because there are days that you need to really risk with the opportunity you have in front of you to gain but do not exceed 20% of your total capacity.
Research! You know some beginners tend to just ride the flow without knowing the intrinsic value of investing to someone's project. Researching will make you more aware of the surface you are moving, it is not just about the price that you see on your monitor, it is what lies behind those numbers and people behind the project, you must know almost everything before jumping in.

Risk and management is about position sizing, setting invalidation and cut loss levels and also about discipline. In terms of position sizing, we should only put the money that we are going to risks. We should avoid all in for us to manage our risk carefully, maybe it is good if we will allocate 25% of our portfolio in every trade.

The invalidation levels are also important in order for us to minimize the losses, we should set our cut loss very tight especially if we want to protect our capital. Lastly the discipline, it is very important because our risks management will be a waste if we will not follow it and that is why discipline is important because it is the one will trigger for us to follow our plan.

Risk management when you trade with shit coin and not have potential at the future become profitable with continue running and get new partner with real business, I know and find many shit coin just on fire few day and then become shit coin at the least delist from exchange market and lost much money.

Risk is always there and its unavoidable and as long you do fight with market price volatileness then youre actively playing with the risk.
Of course, proper planning and good emotion handling will really be suggested into this industry because if you dont do such thing then expect
for mistakes to be committed along the way.Its just a matter of experience on how you do manage things up because each person do have
its own free will on how to handle things into these kind of situations.

Everything will usually depend upon our own how we operate But to avoid risk greed should be avoided  Greed always hurts. Newcomers are at greater risk of being involved altogether sorts of work after greed. Therefore before doing any work, you would like to stay yourself attached and analyze the market well then it's possible to avoid the danger