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Today Market Suddenly dump, so I explain why need risk management is so important for Every Trader.

📌 If you enter a $100 trade and lose 15%, you’re down to $85.

📌 If you make 15% profit on your next trade, now you have $97.75

📌 It's harder to recover losses than to preserve funds. Don't think how much you can make on a trade. Think of how much you can lose on a trade. Risk-Reward ratio is key.

🎯 Also win % does not make a successful trader, but strategy and risk management do.

For example:

✖️ One trader has a 60% win rate but his portfolio is down 6% using a 2/1 risk-reward.

✔️ Another trader has a 30% win rate but his portfolio is up 12% using a 1/5 risk-reward.

Expect to lose short term. Plan to win long term.

📌 So, it’s necessary to have very strict rules on risk management that help you to always preserve the capital and not to take crazy risks.

Cryotp Trading is not a Hassle free business, this is very risky business for new people, and nobody can make good amount from crypto currency without any Risk. On the First time i invest a little amount on a Coin now i already make 10x from my investment.               

Besides, beyond all that the OP has stated in respect to risk control and money management is the issue of "Patience" and "Emotional control". I will go with the trader with a 1/5 risk to reward ratio even though the win rate is small. What that means is the trader will tend to be more selective of trades to execute and not just be in every trade. The problem with most traders is they want to be seen trading at all times even when there isn't any trade set up ready. That isn't how trading works. One has to choose one's trades and pick those with high winning rate.

This is why there's always a caveat to every form of trading on the trading/exchange sites that one could lose one's capital. Again, crypto trading is highly volatile and shouldn't be indulged by anyone who doesn't have the set skills for it.

Actually risk management is more easy to understand if you just explained it in a way about risk management being more into implementing stop/cut-losses and profit taking into every ones plan. Setting up cut-loss points and profit taking points or what others know about entry and exit points is how a normal trader earns money and also reduce/minimize the losses a trader will have if a trade goes wrong. A traders must also know how to be satisfied with their earnings and they need not to be looking back if ever they hold for it for a couple of days. A lot of traders experience this after taking profit yet the value of their crypto keeps going up they need to lose this kind of mindset as they already have a trading plan in action.

Risk is part of the trading environment if you want to try trading it's better if you already made yourself ready for the possible outcome to win or to lose. In trading, this requires strong mental stability not every time a market collapse you are going to sell your assets that are not like that it's consists of analysis and experience to identify the outcome and makes a move towards your decision to put a buy and sell position. Losing in trading is normal but of course, you need to set a limitation to the number of losses and amount of money. The same thing in winning easy set a goal and not expect too much and becomes greedy. When making a trade always set a goal.

It is not easy to manage the risk on trading because no matter how much profit you made, you will still face that risk in the next trade. The only thing you can do is manage your money to trade, and if somehow you lose on trading, you need to be careful in the next trade and always analyze more to find the way to limit the risk. If you can not see the profit in the short term, maybe you can change your term into a long term because sometimes, you will make a profit in the long term.

The other suggestion will not use all-in of the money because that will make your risk bigger. You can split your funds into several parts and try to trade using that amount. If you lose, you can recover from a small amount and always pay attention to the market moves to not get in the trap by buying the coin at a high price.

Strategies and money management are important but % calculation is also more important. In your example, if your doing your winning trades of multiple times then definitely you will get back to the original capital along with some profits.

I am saying these because we need to minimize the number of losing trades and maximize the number of winning trades. So, if you lose one time then you need to win at least 3 to 5 times. Because only winning more will get you consistent profits and if you are making profits and losing at same number of trades then there will be no point of staying in trading. Just quit.

That is right because without calculating the %s of the wins or losses, a trader will not have a clear insight of his ongoing trading journey and he will not know where to take maximum profits to beat the losses and where to take the least loss if profit is not being seen in that trade. A good trader must diversify his capital in different trades and can also use his full capital but with proper risk management, so if there are 10 open trades of equal amounts and 7 of them are in profits, that trader should take those profits at times when it is needed. If 3 of those trades are in losses, trader should have set a good SL to let him save himself from losing big from those trades.

This is what I have been telling of the newbies who are trying to get started with cryptocurrency trading. I told them that no matter if they are newbies or pros, risks are still there. There's no such thing as risk-free trading. All they need to do was to learn how to set the stop loss and never become greedy by just simply take profit when the amount is already good enough. Risk management is necessary, and we have to accept or acknowledge if we ever lose that trade. And by the way, always put in your mind that we experience more losses than wins.

The long term is always the best choice to go along with the market.

It's important to know your plans and how long you should be staying in the market. There will be disappointments that you'll have because the shorter term has always the action and will give you little losses up to half of your capital's percentage loss.

Risk management shall be learned while you're trading for you to adopt the market's volatility and change from time to time.

By opting for long term, we can easily tackle the risks in crypto trading. Yeah, dealing with long duration of holding plans, we can easily adopt what risk management suggests. But, most people are not ready to accept long term holding as a type of trading as they need quicker profits and making entry and exit out of technical analysis and not just by profit levels.

Risk management will become possible for people when we experience the real heat market fluctuations; how you manage your unrealized losing trades is the basics of risk managements.

With the little experience am having before you start trading the first thing you should learn about is risk management. When it comes to cryptocurrency you definitely lose you don't expect to be in profit always there will definitely be lose but one of the most important thing is to learn how to reduce your lost, if you are trading any coin always make sure you make use of stop lose I believe stop lose is very important in trading because I believe is better to lose 20% of your fund than to lose 80% of your fund and when it comes to cryptocurrency you don't have to invest all your capital and you don't have to borrow money to invest in Cryptocurrency. Whenever you are trading always make sure you use stop lose it is very important in trading.

The most important thing in any strategy is not to lose your money. If you learn not to lose your money, you will definitely become a successful trader. Together with your experience and knowledge, you will develop a strategy for yourself that will allow you to achieve a positive balance when the profit will exceed the losses received.

Risk management is at the top of trading. It includes decision-making, market analysis, technical analysis, and fund management. A failure to any one of them affects the result of our trades. That is how very important is that and mostly we can see traders especially newcomers suffer such losses and bad entry as they don't know what they are doing. They don't know what they should have to do.

That is why we can't just say that trading is easy, we can really say it has a process that we need to follow in order to succeed otherwise, failures come next to us.

Yes, its risky but if you do know on what youre doing then you can really make out big returns out of your investment and its a bit needing a mix of luck if i were to say.

Before you do make out investment then be sure that you are aware of the risk and only invest on the amount that you can afford to lose.Dont make your hopes that high because

this isnt something that talks about easy money but rather still needing proper analysis and good decision making for you to make out some profits.

It is classic. Not only about this, but also about your capital. Traders or investors will be killed if they don't have any capital left in hands.

• Protect your capital must be your priority. You can close your position with a draw and a small deduction from trading fee. Sometimes, it is your success, not failure.
• If you win big, you will have two components in your account balance: Initial capital + Big profit. Let's take do the followings
  
  • Take your initial capital out of your account
  • Protect it carefully and don't use it if you don't lose all the big profit in your account.
  • If you lose all your Big Profit, don't use your initial capital to trade or invest immediately. Spend few days or even weeks to think of your mistakes, learn from losses to improve yourself
• In crypto market, it is not hard to get big profit, the difficult part is how to keep your profit, then your capital

Risk management is really important for every trader since we are dealing and working into a market that is highly volatile and we do know that risks are associated upon working into it. Practicing how to manage certain risk will help you out as a trader to make your losses to be lessen and not to be dragged down even further. Being able to deal and work on managing risk will make things somewhat favorable to you because if you will keep on banging against risks and putting too much effort recovering your losses, you might just end up having nothing in the end. You can just be able to survive in trading if you do know how to properly manage your capital and deal with the risks to cut down possibility of greater losses so you can still have something to start with and will not end up empty handed.

Risk management is very important, but what is more important is whether you can do it or not. Basic also needs to be emphasized to beginners in trading. Because there are still many who start trading without knowing how the risks they will face later, because for beginners who are still early trading, they usually only think about the benefits that will be obtained, without realizing the risk is much higher than that, if we don't know how how to manage it well.

In fact, this will traumatize beginners from the losses they will find when they jump right into the real trade and make them mentally exhausted. Their view of crypto trading will be bad, because all they get is a loss, unlike what they imagine, being a trader is difficult to do, if all we want and think about is profit. That is the wrong mindset, if from trading we will get profit continuously. Everything must have its own risks, it is not easy to be able to earn for beginners who are just getting into trading. It is necessary, prior understanding of the knowledge to trade and then you can try it.

You learn about risk management after you understand how to trade. That will really help you in trading later. Because from here almost everything will be taken into account and in the future what you have to do, what actions you have to take must all be determined before something like an increase or decrease in prices occurs. Risk management is also useful for you to anticipate large losses. For example, by placing a stop loss after you predict and consider how far the price will decline. Therefore, do not assume that the decline in prices is a natural thing, it could be that after the decline there will be no more increases. So you need to think carefully about this.

risk reward ratio is very important as a trader, this is one of the things that will you to have an hedge over the market for capital preservation. you dint need to work on how to always win but how win big whenever you win and minimize your loses. doing this will help you manage your risk, save your capital and make decent even if you lose some trades.

That is right. Cryptocurrency is very volatile which is why this is a very risky investment. Risk Management is the key. In short-term trading, Please be mindful in putting stop loss to avoid getting wrecked. This practice was not followed by many, mostly newbies. Cut loss if necessary when things didn’t go as predicted, then find a good entry.

^ The only reason why newbies or beginners are being trapped becoming traders who FOMO, impulsive trading, and selling loss is because of the people who consider trading as gambling, and they are very much influential most of the time and they can influence the news that trading works that way. If you are gonna browse, you see successful traders wanna be with the pictures of their trading platform on their old laptop, looking fancy and professional. But in reality, they don’t learn from others. They are very much egoistic and just wanted to look cool and smart and the cycle keeps on rolling.

Social media is their only basis and that why newbies are being trapped on top because they didn't analyze the market and they have no risk management at all, they are just keep taking risk without any assessment of the possible outcome. Crypto trading is very risky, we must have the proper knowledge about trading, always have a target price and cut loss price so by this you can manage the risk that you can take, and you can get out of the market before it dump again. Newbies are the common victim of this, they are losing money at an instant.

After 4 years of trading in the cryptocurrency market, I can definitely say that without competent risk management, you will not chew in the long term. In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

You mean if we are good at risk management then we can sleep peacefully? Or else, we always need to think about market fluctuations? Yes, you are right.

Risk management is something that will ensure that we will not be losing all our capital even under occurrence of sudden market volatility. It will be possible when we are not greedy and when we are ready to accept losses rather than giving our emotions more priority. Traders must always work on effective risk management according to their trading habits; if they are not good at risk management then it is highly recommended to become investors rather than being non-profitable traders.

I am pretty sure that the 1st year is going to be the crucial part because that is where you develop your risk management, also congratulations to you for reaching the point in trading where you can rest easy even though you are trading.

Risk management is a very important thing. Because if you did not manage your risk , it means that your account is in risk. A professional trader must manage their risk with trading. A trader have to place a stop-loss when he takes a trade.

It couldn't just be done at once or two but make this a habit and continue doing this until the day we stop trading.

Risk management can be more appreciative when we are in hard times and we think deeply to find the solution for our losses and mishandled funds. We can see its vital role in our trading life as we are battling to win our emotions. If to find that we are not good at this, I'm not sure but possibly we are very near to losing ends. Yeah, we probably have a miserable life in trading.

First year is totally a huge mess to those traders who's starting up since the market is full of fud so for sure many traders struggle to handle their emotions in terms doing a good trade on certain unknown scenario. But in next year if you really make trading as a serious business and you keep learning everyday all is now easy in terms reading the chat and doing your own analysis on what will happen to the market in next 24 hours.

Yeah. I couldn't agree more.
Any long-term investor in crypto should ensure that he retains the exposure at the most acceptable risk. The truth is that while risks are considered to be higher on the equity side, they are kept lower when you have a diversified portfolio. If the risk was high and the investor had less investments, he would have been fully exposed to market fluctuations.

Every sector is prone to its own set of risks. If one does not pay due attention to the risks that a particular sector is exposed to, the investor is risking his entire investment.

That is the reason, it is always recommended when you are not properly equipped with sufficient experiences not to go for high risk trades regardless of it will be your first year or second year of trading. Moreover your first six months of trading should be with demo money alone because, real trading environment but zero risk way will help you to learn all the tactics of crypto trading.

Along with risk management, a trader must learn tricks about avoiding emotional failure and effective money managements. Trading requires a lot of tactics and when a trader is failing at least either one of them will result in unexpected results.

Being a trader we've all came from scratch, we all came from a newbie trader but what we have doing while we are yet a beginner, we are observing the market flow, we are being curious the following steps of how to achieve a succesful trading, you are controlling yourself to engage so much emotion in trader and of course the most important thing was to have a self definition of risk management. Doing trading has always a risk, but as long as you know in yourself that you haven't equipped with good background about trading realization then its a must to not try a high risk of trading.

I can't agree more. Everyone probably "knows" what they should do, but the reality is that even if you have the information for it, you may not end up doing it because of emotions, that is the biggest problem. I have seen way too many people make trades based on their emotions for the past few months.

Weirdly and to be fair annoyingly they have made a lot of money, we are in a huge bull run right now (well not now but for the past few months) and I have seen people yolo their hot or btt or whatever coins on 100x leverage with all-in style and get millions of dollars from few thousand dollars. That's weird, I really did not expect anything like that to happen, many newbies became very rich thanks to this period by doing things we advised not to do but I guess market was so good that even people who didn't know how to properly trade ended up with money.

Trading with volatile emotions can lead to fatal problems. Losses will continue to loom over if emotions cannot be controlled. novice and professional traders alike have emotions. some of them are able to control their emotions because of the experience that has been quite a lot, but some people are still unable to control their emotions.

risk management, capital management will fall apart if emotions cannot be controlled.

With emotions that are controlled, no matter how skillful it will be in trading and in the management that it manages, and there is a lot of evidence that we have seen examples of ourselves who have felt the same way when emotions are overflowing, there trading will be destroyed, I not advising anyone when emotions are unstable it is better to calm the mind than to impose only on his greed.

Beginners especially don't ever see anything that we see only around us, keep in a position where we can control in any case that's where I think it would be better than just the passions that are controlled.

You must really be in controlled in everything if you dont like for things to messed up and of course risk management would be the most common things that you should need to control on because this isnt

something that to be neglected on because once you do forgot this thing up then you would really be hardly able to make out profits because you arent aware on how to deal up with the risk involved.

Emotion is one of the most common factor that will surely affect out every trades you do made and that would really be needing some sort of proper risk management handling.

Stable Emotion is one of the factors of a good trader. Management skills are also a factor and if you have those factors in you, Your trading winning rate would be practically higher than anyone lacking it. Just not having one can greatly affect your chance of winning a trade.

Risk management is one of the important things that the trader should do as a habit, Doing risk management needs good control of emotion, especially in critical times like having a losing streak. Risk management could help you recover the losses but when emotion got messed up, The process that you executed will do nothing.

Wow thats an interesting topic. Also some motivational point for newbie. Most of the time lots of Newbie comes into trading platform by seeing sone expert traders profit proof. They just thought if i comes into trading then i can make daily 30-60% or more profit. No matter if i losse its a part others day if i generate again profit. Then i can recover what if the biggest misunderstand for traders. Remember why they called expert traders because they are that much able to recover their lose they know how to recover and how nuch time should i spend to recover. What we don't know we just start panik and loose everything. So i think trade management is also important.

I think, Risk management is they key to success. A trader must learn risk management how to trade.So,Risk management needs to control emotion. And you also need to know higher experience to trading then you can try it.

 The reason why many people do lose their hard earn money is because of risk management when it's not used properly. Newbies are mostly decieved by high reward ratio without looking at the amount of risk they're taking. The power of risk management had really been helpful to my trading lifestyle.

I have a very good picture that clearly depicts what you mean here it is:

https://i.imgur.com/RdfwotB.jpg

This signifies how crucial it is to save your capital. Trader must always choose a lost opportunity over lost capital because growing back capital is certainly impossible because it not only breaks your finance but also breaks you emotionally. You get self doubts and start to get tons of second thought about trading which eventually hurt your trading even more.

True, i guess most people understand about it already, that in trading you need to understand the risk and need to know how to manage it, when you need to stop before you lose even more, or when you can continue and gain profit. However, it's not as easy as it seems, even if you're good theoretically, it doesn't mean you can implement it just like that. I think experience is really needed in trading, since experience will be the best teacher to teach the lesson. However still, it's truly important to know and implement risk management so you won't regret trading.

risk management for a trader may be difficult and needs to be looked at. but believe in trading to be able to get a profit we don't always have to get 100% but it's better to get less but regularly. So I think your risk management needs to be applied and try to expand your thinking if in trading there must be a minimum percentage of profit, not just a maximum profit as you are worried.

Risk management never gives you a hundred percent assurance that you are in profit all the time, this toll just helps us to guide what could be the best thing to do especially when making decisions. But of course, can't be all in perfection, we can't avoid lapses as we are a human being, it sometimes we have been badly affected by our emotions causes to failure.
Whether we like it or not, we can't avoid such a thing and that is more challenging to our part on how to minimize.

like we play horse racing, I don't think all bets can be won. therefore, in my opinion, management is very important to anticipate losses so that they do not get deeper. what we need to remember is that trading is a probability, so we also have to take into account the risk

Risk management. Financial management. Technical analysis. Experience. from this we will be able to get the maximum benefit from the trades that we do. Of course, having experience in emotional control and also believing in the analysis that we have made will make us less likely to get carried away by Fomo or Fud. This seldom can be owned by many traders because now many see it only from a technical point of view

The above list is honestly endless; you may add up emotion management, learning from mistake and not repeating same mistake, etc. These things are important as these will help traders for maximizing the profits and at the same time minimizing losing trades. Overall, we can summarize all the required things into two category: good management and good analytical.

Yeah you are right, when you are good at technical analysis then on the event of FUD, you could exit at stop-loss levels instead of waiting for reversal of market direction.

Risk management is key, no matter how good a traders is at  technical analysis if he doesn't apply risk management it's certain he will be in great lose someday, some times analysis might go wrong but with the help of risk management the lose won't cause much damage or having great effect in the portfolio of the trader. Risk management is key without it many people trading with leaverage will liquidate so quickly, in margin trade risk Management helps alot to sustain one's account even when there is a crash in the Market, with risk management your account will still be breathing real good.

Yeah i believe that risk management is important to every trader across the globe, because trading is a risky type of occupation, crypto is risky it is high on volatility so if we can't manage risk we maybe loss a huge amount of profit or maybe capital so as a trader risk management is important.

Yes it is and always because risk management was the one who can save you from huge loss ahead. Even how good a person is in predictions, in trading, gambling, or in investing as long as he doesn't know how to manage the risk he was willing to take experiencing a losses may always be happen. It is also a must that we know how to do our own technical analysis, to have our own research and study the crypto that you are willing to trade or invest because from here you can measure what kind of risk management you must take.

If that you can never think about good and being proactive with your losses, it surely gives you no hope to recover your losses and expect more to come. if that only we can see despite everything and hard works, it is better not to trade anymore or look for another opportunity. Because the biggest challenge in crypto is how to control our emotions and it is a part of risk management. If we are not capable to change that then there is no reason we should have to continue this thing because we are just going to nowhere.

Yes agree. Accuracy on prediction may get voided if we are not good in risk management. It is kind of you may get good entry points but if you are not good in risk/reward managing then when you enter with lots of positions then you may get liquidated even for a small market correction. So, all your skill in analyzing market may end up in vain if you are not good in risk managements.

I guess setting up daily limits may help in that scenarios. You may go for recovering only if you are left with your limit for that day; if not you must stop for the day and may continue on next day with all new mindset up. There are lots of aspects are being covered under risk management which includes emotion control and sticking with plan as well.

of course definitely.. Actually at first if we will take this causes seriously. Probably we all can manage all the risk when it comes trading.. And for sure there are no complainant how risky this thing is. But unfortunately some ppl nowadays are relying only to some stuff around the internet and didn't even scared of what will happen afterwards despite of being careless on what they have.. "trade what amount you can afford to lose" this line seems a joke for everyone nowadays especially beginners..

Amen!

Risk management allows us to manage our losses, on how we are going to deal with it, without risk management, we will have a hard time on making decisions on how to deal with our losses. To make this simple, for example is you enter a trade with a $50 on it, but you lost it.

Now, most of the traders would do is to enter a trade with a $100 so when they win, they'll have profits instantly, a high risk, high reward move. However, the most safest way for it is to bet lower than $50 and slowly recover your losses, because losing the $100 will just make your loss even more big.

That depends on the risk tolerance of a person, if they have a high risk tolerance then probably the risk management for them will be different. But if you are not one, I agree with what @AicecreaME says here, take it slow and you will arrive there eventually.

You can appreciate this thing when you are in the actual trading and when you are in the difficulties. Because this will simply help and guide you for a better and acceptable trading output.

yeah, never finds it so easy and it really needs the effort to do that. But I believe that everyone can do this if we are willing to help ourselves and free ourselves from suffering huge losses. We usually lose from trading it is because of having a lack of self-control, we make a decision without basis, that is not to wonder why we got this easily. 

Wow is so great, actually it so risky to invest in newly people as a trader, but we can learn if lose.

Indeed, risk management is a system built on the actual needs that we want, removing emotions to complete a certain action, what will be shown here will be the future moves, the strategies we must do to the success or failure of the market, the commands here are absolute and irreversible under any circumstances to maximize the meaning of this system. It sounds quite simple, but most of the time, the user mentality breaks the system's rules very often, they are not afraid of punishment, they accept a greater price to maintain their profitable opportunity

Risk management is the important key to success in trading, but many do not know how to manage it. But I agree with @AicecreaME that if we use a bet lower than $50 and try to recover the losses while still having the rest amount, that will be a backup for us. We can only use small parts to trade and try to make a profit and if we can do that, we can only rinse and repeat the process to make a bigger profit. Do not chase bigger profit if the market is not moving good.

Wow, that's stunning. You have explained this matter in extremely fluent terminology, Risk Management. Trade is a place where no one can attain without risk. Trading means risk investment. So it is very important to have this risk management. Only with risk management can that circumstance be avoided. And if you grab a step in a rush, that is what provokes danger. So you constantly have to deal with the situation calmly, and the system to handle this is risk management. 

It is very important. Without risk management you will be "careless". And being careless never ends up being good. Trading is very risky. You can't always expect to make profit. And when you trade, you may make profit or a loss. Risk management won't increase your profit, but it will in most of the cases help you to reduce your loss. Without risk management you might lose everything you have. Risk management helps you to think about the future and what you wish to achieve. So if you don't have any risk management, it's like you don't even know what your end goal is.

@OP, risk management is definitely a term a trader must keep in his mind in order to get more gains over losses as if the risk:reward ratio is not understood before entering a trade, then that trade may end up sucking out everything from his balance if he goes all in without any stop loss. Also, it's better to trail your stop loss and keep it very near to the ongoing price (if your position is in profit), so that even if the market tries to move against you, you won't suffer losses but will end up in profits. :)

Those are already on the technical side of things which you would sooner or later to be discovered on when you do gain gradually some knowledge on your trading career.

You would really be needing that risk management because you can able to balance out on what should be the actions that you should make for you to make that efficient way of trading.

This would involved really lots of trials and errors because these kind of state cant really be achieved if you dont have able to experience it and risk management thing is
something the most major factor for you to sustain yourself into this very unpredictable market.

That aside, I think anyone that wants to be a trader needs to be sure that they learn the trading and be good at it before they go for it. Imagine knowing risk management and your trading skills are still zero and whack, and you’re still losing most of the times , even though you’re preserving it and not losing much, it still doesn’t make any sense because you’re still losing.

So, it is good to put yourself in check and be sure that trading is meant for you and you’re good at it, then also learn risk management and you’re good to go. When you stop a loss you are able to make back whatever you have lost within a short time.

Without risk management is not trading it's already gambling. I remember in early days in trading, I disregard the proper way and not even use risk management, with just 2-days, I already lose 30% of my capital and exit the trade. Being greedy also is one thing that you must not apply in trading, 10-30% is already good profit and not aim for the one time shot that make you rich. I always trust the process and proceed to other trade after I won the trade. Consistence is also the key, always happy with you're wins.

but sometimes new people think of crypto as a good business. but believe me they don't have good management to be in crypto, they just rely on speculation and end up losing. There are so many incidents of loss from new people and they end up regretting it

New people are obviously lagging in experiences hence there will be no wonder on their view on crypto trading. The real wonder is even experienced traders are looking into crypto trading in similar manner and then losing all their capital unconsciously.

Risk management is vital in trading for profitable trading and whenever we fail with it, we will lose the trades. Losing trades and then regretting will not change the things, naive traders must work on fulfilling where they are actually lagging. Instead of regretting, I must say to accept the losses but learn something out of every trading and try to not repeating the same mistake which eventually lead to good risk management over the time.

Very competent words, I will take note of:) risk management is of course important in our difficult business, where it is necessary to assess our risks constantly and make the right decisions, this will lead to an increase in our assets in the world of cryptocurrency. I do not always assess the risks in a particular transaction, sometimes emotions take their toll ... Of course, I try to fight against this.

Risk management is very important whenever we deal with money! This thread is a nice example of how risk management is applied to trading! And people should be aware of this if they plan to trade and make some profit!
You are more than right when you say how emotions take their toll in specific moments! I think that happens to most of us, just rare people are capable of completely removing emotions even when things get hot, and in trading "hot moments" happen often!

That is why we never say that all people had come into trading will succeed for the reason that not all of them are willing to control themselves but rather be controlled by their emotions. Yes, it is likely we fully manage to control our emotions but in a certain thing, we should have to do.
We definitely don't understand how Risk Management is important in trading if we aren't able to put it as a serious deal. We can appreciate it much once we applied it IRL which is the thing we supposed to do otherwise, we will no longer reach our goal but just a failure.

Risk management itself is a serious one but we traders are treating it in other way.
The importance of risk management is being learned by most traders only by experience after lots of losses but the actual thing should be they must learn from books and videos so that they never need to face any losses to learn the importance of risk management. I mean we are learning it by costing something big and by wasting time.

Without risk management, we cannot find profits at the same time if your making profits without realizing the importance of risk management then you cannot sustain at same level of profits as one day or another you will start realizing along with losses -- that is from my own experiences.

Risk management and emotional control are two things that are interrelated and cannot be separated.
Trading success depends on how to manage risk properly and how to control emotions that must be done. We have to stay calm to think of a strategy to do next.

Emotional control will usually be trained when experiencing continuous losses. We have to stay calm no matter what. don't do anything stupid.

Risk management is a very important aspect of trading that most traders could easily ignore cause of the urge to make fast money. Like we all know that slow and steady wins the race but human greed is a very big factor one has to fight and overcome cause every individual has little or much of it beneath us especially, with strategy that is giving high returns. One can always be tempted to use high risk to reward ratio.

We all want to make money but the pace is always different from one trader to another. So the need for risk management analysis is very important in trading to safe one from unecessary risk that can affects our trading psychology. It also help one to be discipline and conscious on how to use leaverage to trade successfully without over trading.

Here are some good links to read up about risk management and im sure this one would be helpful.
Risk Management Techniques for Active Traders (https://www.investopedia.com/articles/trading/09/risk-management.asp#:~:text=Risk%20management%20helps%20cut%20down,occurs%20when%20traders%20suffer%20losses.&text=After%20all%2C%20a%20trader%20who,a%20proper%20risk%20management%20strategy.)
https://tradeciety.com/why-most-traders-lose-money-risk-management/
https://www.xtb.com/en/learn-to-trade/introduction-to-risk-management

Spending some time to read up wont really require much hard work and time spent.

they just thinking about profit and never about loss. i see there are alot beginner in market, they were attracted while they see their friend get alot money and thinking this is be fastest way to earn huge money. hype and fomo be reason when they come here.

When I decide to holding coin for long term, I prefer to learn more about the fundamental and the trend of the market without stop loss. Actually knowledge how to predict the trend of market is more important because that will trigger all crypto turn to bullish. Stop loss and trailling stop is necesary to use it only for day or swing trading. And for holding, the risk management and strategy that i use is Dolar Cost Averaging.

When the going is good in cryptocurrency market, you rarely think of huge risk you are taking when you enter a postion base on sentimental reasons and market situation! It is important to make sure that your risk / reward ratio is moderate! It hard to recover losses than preserving capital!

It was very important because that will helps to save your money and to avoid losses. It a big asset in handling your investment, without having any single knowledge on how to manage risk, the closer you will end up losing. Learning about his matter is an investment, yeah, many people had spent their time studying and learning about this and you know what? They will succeed.

I think you need to read this...
https://searchcompliance.techtarget.com/definition/risk-management

taking into account the risks and rewards in trading is needed every time we transact. By knowing that, we don't just focus on profits which can sometimes be depressing because we are too sure of the analysis. with the calculation of risk, then we can think logically, that in trading we must dare to accept losses if our analysis is not appropriate.

We can't simply ignore the use benefits of risk management in trading. Some just don't mind it while many were busy learning about this. Well, of course, it can't be really appreciated at first but in the long run, we discover its importance especially when the crisis has come. So, it is much better to spend time learning with this while trading and to see what it could help to improve our trades.

no need to be complicated in defining it all.
Even in simple terms, risk management is managing the risk of loss which will result in the value of your portfolio decreasing and it may be possible to run out.

Isn't in trading the main goal is profit, now with risk management we can manage and manage how to get profit results.
if you don't do risk management, it's not trading, but spending money.

- Indeed, this management is a message, a sobering reminder when we've been too busy buying and selling, instead of thinking about profits and frequent wins, we should know about other variables of the market, except winning, the market will also inevitably fail, and when the market has failed, some individual attempt to buy more goods, it doesn't really make sense like risk management, we can't fight what has to happen, mitigating is the better thing we should do.

Risk management is very important because these are some of the strategies that must be applied in trading to cut losses. Losses will be determined how many percent must be cut to stop the risk of greater losses.
In addition to risk management, capital management and controlling emotions are no less important. All are interconnected, to be able to get consistent profit all management must be done and don't be too greedy. determine what percentage of profit you will get every time you trade.

You know crypto investment isn’t a hassle free business so don't try to buy your selected currencies in one trade try to buy at least three phase. And risk management is a big term of any business so always try to adjust your buying price with market price if you follow this term you will be gainer otherwise you will fall in big losses.

It is a need and it is a must for the sake that we are facing high-risk investment. Many traders never understand this, they just even ignore the importance of risk management but fir sure they soon realize what has its role and what could be an impact on their life as a trader. They never appreciate now and I know they didn't because they don't have the interest to learn. And that is why many had to suffer losses...

Just like by trading stocks, there are certain indicators that will help you decide on whether to pursue a trade or not. You must indeed have, a risk control management in order to get out of the stock before the value plummets down in the market. But in reality, it is easier said than done as these indicators are not absolute information that will give you 100% knowledge.

Trading stocks or cryptocurrencies involve risk that one should take into consideration before delving into it. There was a published article that 97% of day traders lose money in their first month of trading and the other 3% make money, LINK (https://www.forbes.com/sites/simonmoore/2020/06/18/day-trading-surges-in-popularity-this-wont-end-well/?sh=27e3342656c8), as much as a bank teller.

i am agree with "spending money" . most of traders even didnt have trading plan and money management. they are very confused with what willl they do with money , and no reason why buying coins and what will they do if make mistakes. if our goal were profit , we must prepare all stuff well before start clicking buy or sell, 

The chances are very unfortunate but I don't rely on it. I may not discourage people to go into trading if they want because if they want to learn and able to change their mindset, they will surely find a way to succeed.

97% is a huge number, can say most of them are noobs which trying to prove themselves and pretending that they are good but somehow, that brought them to a tragic loss. And this means that we never have to underestimate trading and we have to keep in mind that this is not an easy job, and it is certainly be needing control and risk management.

In simple words, minimize your losses then you will win big. No one can keep their profit ratio 100% but they can keep it higher by reducing the risky decision and also can enable stop loss to preserve from sudden market dump. And if you are a day trader then just got for very small profit margin and keep doing it multiple times as much as you can.

Risk management is very important for every trader to minimize losses. Being a trader is not just being a risky person, you should also learn how to minimize losses and earn huge profit through the right management of your assets.

Risk Management is the key to achieve success and if you are willing to make more from Forex, you should definitely learn about Risk Management.

This is where most newbies in crypto failed to see. They thought, once they enter in this market, it is easy peasy and they can easily gain profit and get rich. It is the same like any other investments, risk management is vital in order for you to understand better the market and so to prevent unnecessary huge losses. Though the market movement in crypto is very fast, you can identify factors that may help you understand specific coins such as following their development updates, actual accomplishment in their roadmap, their performance of their app, how they respond to their customer's feedback and others.

Most of the people trying to trade for the first is just because they have seen people got so much profit from trading and they would like try that out. But, they don't know how much they lose to reach that point.
That's pretty much the summary of your post and people have to actually understand what most trader experienced at the background, not just the profit wise.

I agreed with you here a trader need to aim for a profit of 10% to 30% with a tight stop loss based on the trader strategy to manage the risk, I usually place my stop loss below a support zone when I am buying or above resistance zone when selling with a risk ratio of 1:2 and disciplined to take profit appropriately to avoid greediness when the price hit stop loss I move on, the  market has not respect for any trader, there is always another day and new opportunity to trade and making profit consistently makes a good trader.

trading without risk management = war without preparation...

Trading is not just a game of buying and selling, every decision we make requires careful analysis. This is why risk management is needed so that we have prepared if the steps we take are wrong. For traders selling too quickly can destroy your moment, selling too late is like that too.

Perhaps, risk management could help us here in crypto trading to minimize our losses into our assets.
In fact, even myself I don't know if I apply this risk management, because I traded based on my experienced
in trading and learned from the mistakes I made it before.

Unfortunately, a lot of traders have no patience to attend to this risk management. This is why a lot of them are getting screwed and they will only realize it after. But if you are a trader that wanted to minimize losses, it is better to perform risk management, whatever coin you prefer to invest with. At least, you will have idea what possible scenarios are you going to encounter with, and how are you going to face it once the situation is already at hand.

When you are just starting into this career then all of suggested behaviors and ways will not really be discovered right away and due to experience

you would really realize up things on which one should really be done and which thing shouldnt really be done. Mistakes are common but to think

that these are stepping stones to make yourself a better trader and as you go further you would really be making yourself a good trader;

Risk management is important because without this then you wont really sustain into this market.

Risk Management is imperative for becoming a successful trader. You should learn about the same and you must invest in the market with small amount to develop the skill.

Yeah risk management is all about how you are going to handle a situation for minimum losses and exploring new opportunity at the early possible time. When we have everything planned well in advance then encountering any kind of situation will not be a big problem.

Risking in smaller amount must be one of the easiest way to start assessing risk management and everyone should go for it if they wish to get into manage risk within their control from day one itself. I agree that before we are developing skills which are required for effective trading, we should not go for investing in very big amount; even this sounds like basics of trading, most newbie traders never follow it which leads them into quick losses at the end of the day.

Learning with a small amount should be the starters activity so that they will have the idea how hard it is to make money in trading. And as they learn with that little amount, they will also understand why risk management is very important.

And when they have learned about risk management, they will now change their minds that earning and trading throguh crypto requires patience and time.

It is never possible to trade without risk the main task of a successful businessman is to take risks and achieve success. It is much easier to avoid risk if you know the market well and know the business strategies need to move forward efficiently and start with less capital.

It is difficult to make profit in trading and that's why every single thing that you can think of as hindrance and resolution, you need to think of it.

And if you've gained a profit already although it's somehow small, you may fit with that for the while because if you continue for that day, you might get some worse results.

I did not use stop loss for my crypto trading activity, because I did long term trading , but for risk management I prefer to do diversification of investment. Im not only make invest on crypto but also on stocks, commodities and forex. At the moment I been loss at crypto, but I was made good profit from stocks and forex.

It's true it's not as easy as people imagine that in fact making a profit in trading is not easy,
it requires a lot of effort and having the right strategy depending on the conditions at the time

Risk management is one thing that actually puts you in profit and then let you be there, profiting. It aids you to ensure that should your analysis go ruge and your in or headed for a lose, you actually know when to get out or hang on in a losing trade. Its a strategy that helps you keep greed away. Not having a risk management plan in place means, your out to let greed set in and greed is one emotion you won't want to play with in trading. Its sets 8n a confusion that can actually finish you off.

In essence, one good way to manage greed is by having a risk assessment or management plan. It keeps you in check and within the safe zone of the charts.

Not just strategy and effort.

But you also need a good amount of capital for you to have an acceptable profit. You just can't earn good with small amount on it unless you've got a jackpot with some altcoins that are too risky for you to partake.

It's not we know the risk, we must know where to applies it. Sometime we tend to follow our instincts to the point we suffer our living. There are many now who wanted to invest since the market is going red. It's good to invest but better set realistic limit and time line since the market is too volatile and its unpredictable nowadays. Trading is like gambling in terms that we must set limits as well try to learn on what strategies works on us best.

Trading would really be like gambling if you do just simply make yourself jumped in without even just knowing the basics of it in terms of technicalities and in terms with the risk involved.

This is is why its always been important that you should know on what you are dealing with because if not then most likely you would really be messing up with your investment.Risk management does play a sure thing.

Always be mindful towards your actions and dont just mind off on how you would make out money.Always be wary on how thing works and how thing
moves.

I think at times like these when the market is not looking strong that many people start appreciating how hard it is to make profit. Risks are everywhere while chances to make gains are not so common. Because the market can be so competitive and volatile managing risk is crucial to retain any profit or else you'll fall over the line of despair.

Yes, if you look at the current conditions, the risk of losing profits is certainly quite large,
so we need to be careful and at least be able to manage the existing risks,
despite the fact that not everyone can do that because it's not as easy as we think

The risk never reduce, we are still in a high risk investment market, and that is the norm of crypto.

If we have the knowledge, we understand the risk, and if we understand the risk, we will be able to manage the risk.
Therefore, it's really a basic thing to understand crypto before investing, especially the risk associated to it.

it's true that it's very attractive due to high return, but always look at the other side as well, not only the reward.

It is very important that a lot of people gets to see this. There are people who are but are very careless. They trade and don’t care about applying strategies that’s going to help them in managing their risks. They are just looking for profit, they are only calculating the prints and are not calculating the risks that they are about to take, which is very bad.

Anyone who plans to go far with cryptocurrency trading has to arrange themselves properly and start making use of the right strategies, that’s what’s going to help you succeed. If you don’t learn to apply risks management to your trading, then you’re going to be more likely of losing.

You need to grab this! Risk management is a way of ensuring that risk to reward ratio is balanced by trading with lower risks and higher rewards in percentage. You can decide to trade with risk to reward ratio of 1:5, which is a profitable way to trade.
Just like entering a trade with risk to reward ratio of 1:5, if your stoplose is worth $10 then takeprofit will be $50 because the reward ratio is higher than the risk taken. This is how risk management work, it helps one to trade wisely and avoid unnecessary risks that could affects one capital during trading.

It should be balanced as always and as an investor then you do really need to take a look whether it would be worth or not when it comes to risk because you cant just make out positions without any basis because this would eventually turn out to be a mistake or do end up on being a loss or becoming the reason on why you had lost money in your investment.

You should be wise towards your actions because if you dont mind much about on how to manage risk then you are just basically doing gambling in the first place.

Risk management should be a standard thing and that shouldnt really be separated anytime you do make out investment because this thing is really very important.

Yeah, not all the traders are good in both technical part and in management part of trading. That kind of traders are buying signals from others for their trading and they never think about other aspects of trading because they only need signals to buy and exit (it can be either at target or stoploss).

I'm sure this types of traders when they are working for developing their own risk management strategies then definitely they could get more opportunities compared to how they are currently doing only with signals. These trader must be having different reasons why they are not working on other aspects of trading and one of them must be lack of time as such traders are trading only in part-time and they might be having a regular day job and in evening time only they might be trading. So, not too bad still not up to the mark of pro trader.

To trade, you must take risks, but the most important thing is how you deal with those risks. You can't ignore the risk of trading, but you can reduce it with proper risk management. So risk management is important in trading.


Longterm investment is certainly a good decision, but it is also important to note the market conditions before making long-term investments. I also often do not use stoploss for longterm investments, but I do use stoploss in shortterm trades to save my fund from sudden losses. So risk management has to be used when the trader goes to trade.

every business have their own risk, even if we trade in real life we will see risk that may suffer us later. And its happen in finance market which is have bigger risk in my opinion. There are huge risk with huge gain and every investors that will join in this market must understand about it. Our money could be zero if we didnt use risk management in finance market, price could goes down anytime and all price almost be zero. Stop loss or other MM will help us secure our money when it happen.

Do not forget about luck though. Risk management is not a guarantee of success,,, it is a hedge against failure and bad luck, but it cannot prevent it from happening if it does. Imagine opening a retail business at the end of 2019 for example in a country where there is no welfare or covid relief. No matter what, 2020 covid lockdown would have killed you.

Crypto crashes? exit scams? Dead exchange CEOs? Equal bad luck.

The risk remains.

We can potentially lose our money if we don't know what we trade and why we're trading. The risk will be with any of the chosen field we do, trading or investing/hodling.

Whether you've got a huge capital as you trade or invest, it can potentially go to zero if you're reckless and just trades with your emotion.

Yeah, because nothing comes with zero risks. We are always talking about bitcoin is risk-less in long run holding still it is coming up with at least 0.001% of risk as anything may happen in future which may not be predictable with a human brain. So, not risking with all our money may help in the end which must be treated as the highest prioritized principle in risk management of crypto trading.

Risk management got its impact in finalizing our outcome of trading in direct proportional way so giving it importance by following it while trading will lead to sustaining good results in crypto trading.

People don't understand that fact about bitcoin. They see the current drop of it but they never look at the long term power that it's going to have.

Well even in today, bitcoin is already showing what it can manage and maintain its pricing from the moment that it had dropped from the ATH.

big capital didnt guarantee to us we will could survive longer than trader with small fund. Usually they were too confidence with balance they have and careless when every open transaction. Let transaction opened without any clear money management either stop loss or another ways to secure their money.  Money management will always help us in extreme market condition that suddenly happen.

A very wrong mindset to have because big capital wont really make out guaranteed of success because what matter most is to sustain yourself or survive in the market.

You would really be needing risk management and making it as a default thing as this is the main factor on where you do really need and the most important.

As a trader then earning profits or money on this market is hard but could really be possible if you do know on what you are doing.

The result is totally depending on what we do but for me, capital matter a lot and the chances to make a big profit is high if you have a huge amount of capital in trading. Because you can't just invest in 1 coin, by spreading your money to different coins it helps to recover losses if it happens, or it all be in gaining side, well, that even more advantage.

However, if we think about losing, you also have a chance to loses more compared to small traders. But the outlook will certainly change depending on how we manage our trade.

most of them didn't have knowledge about bitcoin price cycle, when they invest into cryptocurrency market mostly due FOMO from internet of maybe their friend which is got huge earning from this market. Having complete knowledge in technical analisys and  cryptocurrency cycle could help us generate high profit. we will know how to make money faster than in other field.

They probably know it but they don't understand enough about the proper time to "entry and exit". Yep, many people joined crypto investment because of FOMO and don't have sufficient knowledge. Technical analysis or analyze the chart isn't enough, we also need to do fundamental analysis and monitor the current update in the crypto space. Crypto market is really unstable and easy to change because of the news or issues. So, not only learning price cycle and technical analysis, don't forget to learn fundamental analysis and always monitor the update about crypto news/issues.

we can see during the fomo that many people actually dare to buy when the price is high, but if bitcoin is in a bearish trend at a discount, not many buy it. from here we can conclude that traders' psychology is being played with so that they are hypnotized by the words of whales

I totally agree with the author of this post.
Risk management is essential for every trader who looks forward to making a stable and more or less predictable profits from trading.
I would also mention money-management which goes hand to hand with risk management. It is undoubtedly true that you should somehow hedge your risks but you should also know how to manage your budget in the most efficient way. Like it is totally wrong to put all of the money from the deposit into a single trade because in the worst-case scenario (which happens surprisingly frequently) you'll lose all the money at once.
Money management also implies having a strict trading strategy which can give some adequate and objective explanation, why you should do this or that deal. It is crucial if you want to keep your emotions under control. In this case, you won't have any fear or greed, you'll have a plan with the calculated probabilities and the plan B which will help you to lose as little money as it is possible.
Money and risk management are interconnected but I think that these are the only things which enable to differentiate between a trader/investor and a gambler.

Risk management and setting a stop loss will provide good management when a trade does not match the analysis and is forced to cut it. it will reduce the loss even more.
however, money management is the most important thing so that money management for trading can be managed properly when the market crashes. Don't use all the money to enter in the trade because it will not be good. In addition, psychological management must be considered. Don't panic too much when the price starts to crash, it's time to buy, use the spare money that has been prepared.
every trader must have good risk management and psychological management.

In my understanding both risk management and money management are about how a trader needs to react against market fluctuations in a way on minimizing losses and helping to maximize the opportunities for profit making. No big differences.

Yeah, setting risk management as a default thing must be a right approach. But most people never pre-calculate anything before opening a trade; if they are aware of risk management then probably foresee everything and will risk in their every trade in a way they could sustain among many losses so that they could finish a week or month in overall profits.

- The backwardness in the trading experience combined with the overall view is also lacking, that makes their management ability not comprehensive and accurate, another serious problem is that they are not able to find reasonable stops as they are trying to use more than one trading instrument during the determination process. A few simple indicators will give accurate stops, there is no need to combine too many options at once, it can be optimal but imperfect application will be a negative reaction.

This is true and accurate on where big capital does have even more versatility when it comes to your trading decisions where you can neither decide on diversifying or making a bigger lot size on your orders

which could really take some advantage but of course you should mind that the risk is more higher than you do have less capital but we wont really be gaining that much or potential earnings if we wont risk.

So its a matter of choice of someone on how they would gonna handle their finances and investment. All possible factors that can affect your trades should be considered to look upon and not

just simply neglecting or not giving out some importance or focus.

They can be hypnotized because they have lack knowledge and self-control. If they have sufficient knowledge, I am sure they won't be hypnotized since they know it is too risky. Also, self-control has an important role, many people followed FOMO because they are too greedy and cannot control themselves. So, there are two things that we must have to avoid following FOMO blindly, they are (1)knowledge and (2)self-control. Make sure you have them well, mate.  ;)

indeed there is no big difference, but both must be done correctly and disciplined according to the strategy that has been made. In addition to the risk management mentioned in this thread. Some other things such as the correct use of technical and fundamental analysis will be very influential. Trading is not just buying and selling, but how to multiply assets by minimizing the risks that will occur. Profits are not always obtained, but losses can be avoided.

Your talking like cryptocurrency investing alone isn't risky enough, remember that most cryptocurrency are so volatile that investing in them is pretty much a risk of itself, if you can manage your risk when trading I think that you will do fine, remember what the OP said, go for the long-term if you can so you can get a big profit.

Risk management makes a difference cut down misfortunes. It can too offer assistance to ensure traders' accounts from losing all of its cash. The chance happens when dealers endure misfortunes. If the chance can be overseen, dealers can open themselves up to making cash within the market.

where did the $2.25 dollars go ? in the fees ?

we dont wait before the price fluctuate but if we want to preserve our funds we can withdraw or trade it into stable coins and losses are hard to recover if you trade on the wrong coin .
traders wont get high win percent if they arent good but not all times they are in profit but they can experience a bad trade too sometimes .

No, that's just how math works. If you enter with 100 dollars and lose 50% then you will have 50 dollars, if you earn 50% more that will be 75 dollars. It means if you enter with 100 bucks and lose 50% of that, you need 100% profit to make that money back, 50 dollars' 100% is another 50 dollars, whereas 100 dollars' 50% is 50 dollars loss. That's how it is in every calculation, whatever you lose, you need to make it twice back in the percentage sense.

It is still same money though, so if you enter with 100 dollars and lose 50 bucks, you need 50 bucks to recover it back, hence it is same thing in dollar worth, it is just different when you calculate it in % and that's it. Do it with any starting amount, 20 dollars, 10000 dollars whatever you want to test it, it is always the same, if you lose 50% you need 100% back, if you lose 20%, you need 40% back.

Yes I agree, Risk management helps cut down losses. It can also help protect traders' accounts from losing all of its money. The risk occurs when traders suffer losses. If the risk can be managed, traders can open themselves up to making money in the market. You must be able to manage your risk and cut losses so you can continue to trade. Managing risk also means protecting your capital. It's important to not let a bad trade drain your account.

By actualizing a risk administration plan and considering the different potential dangers or occasions some time recently they happen, an organization can spare cash and ensure its future. Other vital benefits of hazard administration incorporate: Makes a secure and secure work environment for all staff and clients.

Risk management is something should be on default when you do make out investment.This is a thing where do really avoid you on messing up and blown up your entire account.

You should consider on having this and not just putting up money and just wait for it to grow or make out profits which is really impossible.As a trader there are lots of things

to be done or needed for you to succeed on this field and not just simply like planting unless if you are a hodler then that surely counts.

It is inevitable to lose money when trading, but it is necessary to reduce this loss as much as possible. Therefore, risk management is very important.
Risk management is mainly to understand and master the balance between profit and risk. Traders should see the potential gains during the transaction, and more important to anticipate possible losses and reduce risk losses as much as possible. The anticipation and success of a trader's risk management is also related to his trading psychology, when they are not afraid of risk, they will win more profits.

The main risk of trading cryptocurrency is its volatility. If you want to profit by investing in cryptocurrency, you must first do a good job in risk management. Cryptocurrency is a high-risk investment, and market prices are very unstable. Changes in market sentiment may cause sudden changes in prices. So learn to manage risks and stop losses in time, which can effectively reduce losses.

Any investment and trading are risky, especially in the crypto market. Investing in cryptocurrency is a risky investment for many people. The cryptocurrency market is volatile and risky.
High returns are bound to have high risks, so before trading, you must understand the nature of the currency, analyze market conditions and price trends, learn and do a good job in risk management, and reduce the loss.

The emotional part is very important. Know how to endure in moments of loss to be able to sell when you recover.

 :)

most of us and myself included, by trading will get a lot of money quickly, that was the first time in my mind, but it turns out that after trading it is not as easy as we imagine, we are like running a business by calculating the level of risk every time we make a trade. transaction. therefore I realize that my money is very valuable to me, so there must be risk management to anticipate analysis errors

Are you sure? first time investing and now profiting x10?  Common man are you serious ?  ;D

But well lets assume that you are the question is why still not selling the coins? or why not buying again if you had already sold the coins?

Complaints about volatility ? lol if you are complaining about that then better to get out of this market because crypto investing is a lot of risk as the volatility makes this market moves.

This reminds me of one of my friends who had problems with risk management. He made a bad trade like going all-in. Despite that I have given him advice of not going all-in and should diversify instead, he decided to push through. In the end because of his bad trading decision, he almost lost all of his money and was depressed. I highly agree with you that risk management is very important, especially in the financial side.

if we are too careless and don't have a market advantage which knowledge and skill, the chances are huge that we gonna lose. It is something we need to invest in first in Financial Risk Management and so we can appreciate how it was important for us for our next journey.

A lot of people make a good fortune in trading because they work hard to learn as it was the warrant to succeed. If we don't care and place some importance on Risk management, we are simply putting ourselves at risk and possibility losing our money.

Good risk management in the transaction can effectively reduce losses. Risk management is the key to success.
Before trading, you must observe market liquidity and analyze market conditions, and have your own criteria for judgment. Most transactions in the crypto market are high-risk and high-returns. Only by doing a good job of risk management can reduce losses and maximize profits.

Risk management is so important for every trader because it helps reduce losses. It help protect traders' accounts from losing all of its money. Risk management helps to identifying  risks, problems or disasters before they happen so that we can solve out these problems.Risk management is key to trading. Every trader lose sometimes but good traders respect and manage their risks that's why risk management is important to every trader. 🙏🙏

Part of the problem is that what feels right is frequently the wrong thing to do. That's why having models or a strategy to follow gives you a path. Then you have to be disciplined in your approach.

That liquidity is the thing that saves people, if we want risk management to be done perfectly then we need to be liquid a bit at all times so that we can make some profit but not everyone have unlimited funds so it becomes a problem for some people.

I agree with you that without risk management all we have is losses that can't be taken back and just keep on losing money, and that is why it is a bad thing however at the same time I believe that we should be able to do risk management even when we do not have too much money and it is not simple at all, it is really a difficult thing to do when you have a very little amount of money. So I do not know what people with less than a thousand dollars do for risk management, I know I didn't do any risk management at all and it was a horrible period for me, all my losses were near permanent losses but after that I got a bit easier profits.

well, if your friend chooses all-in, then the risk percentage also increases. this makes me think that this is related to the explanation in the cryptocurrency world that the percentage of profits on an up and down is very different.
however, the most important strategy in trading is to make a sign for a cut loss. it can make a trader minimize the risk. Besides, another mistake your friend makes is that he goes all-in. well, in terms of profit, it is very profitable. however, in terms of risk, it is very dangerous, especially if he does not have a good management strategy in the world of trading.
well, it can be an important lesson for us in the future.

You are right, because all of this is caused by overconfidence, which often results in what they do must be right. it shouldn't be like that, it's not very good too feel that what they are doing must be right. must be aware that everyone will experience the name of mistakes that are not realized, which may be out of control.

Therefore, experience in every action, is always the main milestone to step into something that might be done, by continuing to hone yourself and analyze well. because everything needs to be done perfectly to get the best thing later.

Risk management is very important in every field of life. Without manage risk our loss chances are very high. And in trading risk management is an essential part of trading. In trading we named it stop loss. It means you manage your risk that after that rate i will exit the market. In this technique your total account balance will not vanish.

risk management is so importent becouse its cover loss of traders and cut losses for all traders account if a traders makes good profits and making smart money and risk occur then they loss all money and they are in loss but in this time stop loss is a great way to stop her loss
use this tip if you getting some profits then put stop los and also stop orders to keep safe your profits and also make some good plan for your future trading
unfurtunetly some traders entry in trading without any idea of trading at any platform which give huge loss her money

Agreed, some individuals are simply overconfident and do not consider the possibility of a negative conclusion; people always feel that it will always pump, but the contrary occurs, and in the worst event, it remains at the dip. Consider that if you've done risk management, you'll be able to stop your losses and diversify your holdings, resulting in more profits. It is preferable to have experience before investing large sums of money; experience is the greatest method to stay on track with your investment.

for a trader minimizing losses is the main thing. Therefore, it is necessary to have control in it so that we are not trapped in a state of continuous loss. risk is definitely there especially with this ups and downs crypto market but we must be able to deal with it well and believe that we can do it. risk management is very important so that we can control our trading activities in the future. it's not an easy thing either, but if we can understand our own trading flow well then it will help.

risk management is very easy for traders who are able to control their emotions in trading. Stop loss is impossible for us to handle 100% in trading, some beginner traders who jump into cryptocurrency trading are often unable to control their emotions, this includes me when I first jumped into trading when this dump became frightened and made the wrong decision. so it is necessary to learn how to manage risk and be consistent with the initial target setting.

risk is the real proof when it comes to trading. It takes mental stability and being able to control emotions when the market situation is beyond the initial target when trading. So the importance of risk management because the market is so volatile that risk has become a part of trading. So for a trader at least minimizing losses is very important rather than continuously losing his assets.

Not until a trader starts the use of risk management they won't make consistent profit that will help the account to grow. What the risk management does to the account is that it doesn't allow for excessive and unreasonable losses that will drain the account. If we use the system then we have proper control of our losses and quantity it to our profit because in trading we require to make more profit than losses. We need to use risk to reward ratio and that will control the risk we want to take in a particular trade.

They wont really learn if they dont experience up things that should a trader/investor should able to experience on.This isnt something that can be acquired without doing anything thats why real experience

is they key for you to make yourself even more better.Of course risk management will really be the main thing for you to handle out situation specially dealing with unpredictable market.

This isnt something that you could just ignore because if you dont progress then you wont really make yourself improved.

It is for minimizing the possible losses.

A trader knows how to manage the risk and even calculate it if it's needed. This has become a standard for the traders because they're all for the safety of their trades from huge losses.

Risk management is one of the most importance aspects of trading because you can have a good strategy that gives you a decent win rate but if you don't have good money management or risk management your portfolio will not grow. The industry standard is that you should risk 2% off your equity password but I personally do not expose my equity to more than 1% risk. That way it is easier for me to recover from losing Streaks

And without such knowledge, it is like you are trading blindly without any plan or strategy at hand. Which can eventually wipe out your assets. This is very important for traders so they can also prevent big losses. As much as possible, one goal is to optimize your profits, or at least minimize your losses. If you feel that there's something wrong with your strategy, you can easily check what made it wrong and rectify it as soon as possible.

Risk management is very important in trading and investment. Everyone will have a loss when trading, so we must analyze the market and formulate a trading strategy that suits them. Take profit and stop loss in time and carry out risk management. Risk management can help reduce losses, and not all funds will be lost when market prices change.

Yes your right ! Most newbies don’t think of how much they could loose , they think so how much profit they can make which in turn makes them to take steps which leads them to having a loosing trade , risk management is key. Since the market market can’t be predicted it’s always better to manage risk so as if the worse happens you’d be on a safe ground buh greed won’t allow most traders know this little fact .

For traders, risk management is essential.
Risk management is the key to trading. It can help us manage losses, reduce huge losses caused by operational errors in the trading process, and avoid losses or liquidate all trading funds.

You are right, because no matter how good a trader is, he can only guess the direction of the market, he can lose, he can make mistakes. So risk management by using features in trading such as stop loss is absolutely necessary. That is support for the analysis because it is better to lose a little than to lose a lot.

Planning of winning in the long term trading is quite important and I must tell you that risk management is also really important in both type of trading , in long term as well as in short term trading also. But the difference is that risk management in long term trading is must and you should keep an eye on it.

Of course, the newbies are just full-time employees in real life and their worry is just a delay in getting paid and having a pay cut, there has never been an element of losing most of their salary from their company, hence, they will not have the expertise of an investor, more precisely, their trading theory is an old version and has not yet added new criteria such as skill and risk management. A fact that we should admit is that the number of people who know trading well is still too small, almost only know here with the belief of holding to death without thinking about disaster prevention.

It help trader to know when and where to buy and sell to make a good profit. It slow many traders not to get involve in losses in their trading by investing wisely in a particular project. It help to watch the market price very well before buying coins or selling coins in the market.
Is to help the traders to be more comfortable with their investment despite the dumping that is making other traders not to invest. Risk Management help people not to regret with their looses from the past than to be more focus on the present investment.

It is never possible to do business without risk. If you want to be a successful businessman, you need to know the strategies of the business and move forward efficiently and take risks if necessary. However, if you want to do business without risk, you must start a business with less capital. And you always have to keep in mind that there can be loss along with profit. To survive in the crypto market you need to take risks and keep your mind fully prepared that you can lose your capital at any time. And this problem has created a limitation in cryptocurrency.

Agree with OP.
Risk management is very important for traders. If anyone wants to survive in the trade, He must be known Risk management. Because most of the people cant able to survive in this field. Risk management helps a lot for survival in trading. If anyone wants to learn a trade, I suggest she/he first learn Technical analysis and after that risk management. TA will help you to take a trade and Risk management will help you how much money you will use for long or short. Without proper risk management, A trader will be Rekt very quickly.

Until now, newbies and beginners are prone in making their emotions taking over them if everything goes down the wire. It’s simply because they’re getting engaged into the hype and doesn’t care if they go all-in or not without knowing the risks. It’s currently the best skill that we need to have as crypto traders.

Our emotion is part of the risk we need to know how to manage because it is important to our phycology of the market and studying and charting out the market properly. For instance if we don't have balance phycology to know that we don't need to force the market to profit from it after we have lost, we can re-enter multiple times and lose. So it is better if we having a sound mind and emotion to take good trading decision. Newbies and beginners are always in a rush when taking up trade. They lack experience to understand the market phycology and percentage of risk to take in a trade.

Yes, how can it be said that the risk management that we do can be effective in trading, seeing the market situation that is currently being dumped, for me there is no need to open sell if it has touched the % we set. It is better to hold it, because the support line will form again in the market and lead to the resistance line. And it is an opportunity to do an open sell.

In trading indeed we must have skills because it is important to support in trading,
In addition to skills, knowledge is equally important,
Trading in crypto is very risky, therefore it takes a lot of things for sure

well, the OP has a brief, but insightful explanation. however, strategic management in trading is important. sometimes, people only see the percentage, but don't see the actual value of the asset. Because of this, the risk-reward ratio needs to be considered.
Personally, I do a strategy that emphasizes minimal risk. like logging in on $100 total assets, and when the total assets drop to $85, I'll pause and plan back, then re-enter with $100 when the time comes. however, for an increase in total assets, I will hold that until I am satisfied with the result.

Well said OP and examples are well elaborated !
Something that goes hand in hand with risk management are emotions. One way of managing emotions is using risk management which will always help you stick to your trading plan without interference and protect your capital from being affected from more than you are ready to lose. Not forgetting risk management helps in managing how much you can use per trade if you aren't a high risk taker.

The trend on risk is becoming too much and maybe scaring newbies the more, don't get me wrong, am not saying it isn't necessary for them to be forewarned about what they're going into, but s constant reminder about the negative may drive them into making the mistake we're pushing them away from...

I think we should also come up with positive trends that'll encourage them to want to make greater achievements like many of  us may have....
Selah!

As the losses are common in trading and the top traders now a days due to the market situation making losses in that coins which they had expected to get it and go into the ATH, but they are making losses, so risk management should be always taken care of and will look into it as I had told every trader that they need to work with constant patience in trading.

The risk that we can get in trading is something that definitely happens. therefore we must be able to control it by means of risk management like this to minimize the existing risks. every trader certainly has a choice to succeed or fail and it all depends on how we manage our own assets. With risk management for a trader, it is hoped that they will be more careful and also aware of the ups and downs of the crypto market so they don't get a loss. anything will be done by every trader to be able to do the best in trading.

Risk management is absolutely vital thing to be likely to succeed in trading. Actually to get rid of losses of  money while trading, people often uses different risk management. In every line of work there is always present some sort of risk. If a person does not have the ability to cope with these risk then he should first start understanding related to risk management.

that is why they need a risk management because that will help them out in case of failure , we are not scaring them instead we are helping them to understand the market deeply before further losses they might encountered .
for our years in this market, we have already saw everything along the way.
we even lose and we even earn.
they must understand those first for their own goodness.
Invest in crypto if you have deep understanding and learn more if not.

No trader make a choice of failing. Every one wants to make profit. Except you saying if they don't research or plan very well then they can fail. It is lucrative with trade but needs proper care to succeed and that is why risk management is important. I have not seen a trader wishing for loss but it comes when we don't go the right way and that turns to failure but the first plan is for profit and that is the ultimate target of every trader.

In order to achieve good profit and save portfolio, risk management is the most important part of trading. If we do trades according to risk management, we can get a good benefit from it. We can also use risk management to get entered at a good dip, which gives us great profit

The purpose of risk management in trading is to make good profit in every market  doing trades according to risk management, it's mean if we are in profit we need to sell in different part so we can get a profit in every pump this thing we can also apply in buying

You should immediately understand that trading is a risk. A trader can invest money and get nothing in return. This must be understood.

Once you do step your foot into this market then its understandable on what you are dealing with and this isn't something like a childs play for you not to get

serious with things specially you are dealing with a very volatile market which means you would need to be smart on playing with those movements.

Its a crucial thing to have and a must when it comes to investment that's why you should really consider this one out.

the risk of trading does exist but we must also be able to avoid it so as not to fall into losses. why risk management is important for a trader because it is something that must be done so that you can be more careful and alert in trading. Trading requires careful thought so we must also think about the risks that can be obtained if we are not careful and in a hurry. who can control ourselves is ourselves so do the best in various ways to be able to get our goals in trading.

Risk word is very important in trading because of this we can get huge loss in trading. Crypto trading always has been a risky place where your money is not going to be at same point, after entry it will definitely will be on upper side or lower side that's why we need risk management in trading. This solution provide traders to not loss big amount of money and get out of market when share goes to serious fall in price.

Cryptocurrency is a place where you can get both types of results if you invest or trade. If you have enough experience then you can make a profit by trading cryptocurrency . However, inexperienced people sometimes gain but in most cases they have to face losses.

It should be understood that risks in trading are quite frequent, rather even regular. And the trader needs to be ready for this.

You are right, my risk management is very clear and it does not fail me, for every movement and operation that I normally do I put my stop loss at a maximum of 8%, more than that I do not allow myself to lose because simple, it seems to me that when I reach a 10% I am not one of those who believe or who hope to recover, I prefer to assume my loss and exit the market, in this case I do it that way, when the market is in a lot of uncertainty what I do is go out and wait for the best moment to enter, whether the market is either up or down I prefer to clear doubts, I never enter the market with doubt and when I enter and lose that becomes a unique learning.

As you know that people may face loss as well as success. So if you learn about the planing to win then with this you must have to know about those strategies which are essential to recover your losses. Do not put that type of money which you cannot accept to loss. If you loss in trading then just think that in next step how will you recover this money so it will be better for you if you does not make yourself sad after your loss.

Risk management is mostly need in trading because without this we won't become a successful trdaer we need to see that how much need to jnvest how much savd for dip and how to manage portfolio everything need to know for successful trader

risk management is one of the keys to success in trading, we don't have to lose a lot because the market is dumping. You calculate the risk management percentage, actually it depends on the trader dealing with it. all traders need risk management to control their trades.

In crypto currency trading, Risk management very important and needy.  When market pumping then risk parentage calculate and also calculate after dumped. If a trader don't control risk management then he obviously Face huge amounts of losses.