Trading Risk Management. Top-9 Rules

[Bit talk]

Thank you to all for your knowledge

[Moiyah]

I'll surely follow all what have been posted on the OP. And try to print out this informations and rules as this was very helpful for me as a trader. This is to remind myself to refrain from going all in as we all know that the cryptocurrency is very volatile.

[victoryana]

Trading Risk Management
The thing that can burn all the profits of a trader is greed
But one thing is for sure - you have to sell while prices are rising
Another important point about risk management is the diversification and scale of your portfolio.

[kicauklaten]

While managing your risk is the most critical part of your investment strategy in any market, cryptocurrency risk management needs particular attention. Read this short guide to learn how to upgrade your investment skills using a risk-informed decision-making process.

 1. Don’t invest more than 20% of your deposit in one altcoin.
 2. Always set Stop-Loss (selling order). It will allow to fix your gains and control your loses.
 3. For long-term positions don’t invest more than 50% of your deposit in altcoins.
 4. If you see the signal that BTC price is falling down and you want to sell your bitcoins and repurchase for lower price – don’t sell more than 20% of your deposit.
 5. Don’t purchase currencies during intense growth.
 6. Don’t trade when you are tired or emotionally down.
 7. Try to purchase coins on the bottom and don’t be greed while selling. To have several winning positions with small profits is much better than waiting for super-gains from one position.
 8. To get insured that the signal will bring you maximal profit, diverse selling orders. It’s needed for a case if not all the targets indicated in the signals will be reached. The biggest possibility belongs to the first target. Chances to break the 2nd and the 3rd are smaller. Optimal trading volume should look like this: 50-70% for the 1st target, 20-30% - for the 2nd target, 10-20% - for the 3rd target.
 9.The last one and the main rule: never go all in! What you should do, is excactly the opposite. Always trade with low percentages of what you own. Every trade includes the risk to lose money, so a single loss should never be too destructive concerning your total assets.

rule number nine who sometimes make a lot of people wrong in addressing it. many of the investors who are new to let alone have the thought that they'll get big results with large capital. It is true however that it is too risky. If the market situation was falling then it would be a great loss if it had to sell in the low State for immediate needs.

[fortelen]

While managing your risk is the most critical part of your investment strategy in any market, cryptocurrency risk management needs particular attention. Read this short guide to learn how to upgrade your investment skills using a risk-informed decision-making process.

 1. Don’t invest more than 20% of your deposit in one altcoin.
 2. Always set Stop-Loss (selling order). It will allow to fix your gains and control your loses.
 3. For long-term positions don’t invest more than 50% of your deposit in altcoins.
 4. If you see the signal that BTC price is falling down and you want to sell your bitcoins and repurchase for lower price – don’t sell more than 20% of your deposit.
 5. Don’t purchase currencies during intense growth.
 6. Don’t trade when you are tired or emotionally down.
 7. Try to purchase coins on the bottom and don’t be greed while selling. To have several winning positions with small profits is much better than waiting for super-gains from one position.
 8. To get insured that the signal will bring you maximal profit, diverse selling orders. It’s needed for a case if not all the targets indicated in the signals will be reached. The biggest possibility belongs to the first target. Chances to break the 2nd and the 3rd are smaller. Optimal trading volume should look like this: 50-70% for the 1st target, 20-30% - for the 2nd target, 10-20% - for the 3rd target.
 9.The last one and the main rule: never go all in! What you should do, is excactly the opposite. Always trade with low percentages of what you own. Every trade includes the risk to lose money, so a single loss should never be too destructive concerning your total assets.



These 9 rules about the risk management especially in crypto are very helpful. These tips can help everybody who are especially new in crypto. It is true that we don't need to sell or buy more than 20% of our deposit to minimize the risks. However, if we are really ready for the bigger risks and profits, you may increase the nominal. But of course, not all people will do it. I'm sure that everybody will have different strategies in winning the profits. But, these tips can really be one of the inspirations.

[PeriKecilkitty]

in my opinion, a very correct suggestion, which stems from the personal experience of this person, I think that these rules can really help you in trading. But you still do not need to forget the fact that trading is very noisy. I think the most important rule is to be patient. Initial and hasty steps can hurt us.

[lunaelucemauram]

A very under valued post in which should have been merited and I do have merits I would put a merit on it. Putting merits aside  understanding and putting to use some of the rules or methodology of OP can br a deciding factor in earning big time in crypto trading or having a bad trade. This also separates newbie traders that always whine about the prices of crypto and professional traders as they are disciplined and stick to the rules that they make.

[Nggedebus]

While managing your risk is the most critical part of your investment strategy in any market, cryptocurrency risk management needs particular attention. Read this short guide to learn how to upgrade your investment skills using a risk-informed decision-making process.

 1. Don’t invest more than 20% of your deposit in one altcoin.
 2. Always set Stop-Loss (selling order). It will allow to fix your gains and control your loses.
 3. For long-term positions don’t invest more than 50% of your deposit in altcoins.
 4. If you see the signal that BTC price is falling down and you want to sell your bitcoins and repurchase for lower price – don’t sell more than 20% of your deposit.
 5. Don’t purchase currencies during intense growth.
 6. Don’t trade when you are tired or emotionally down.
 7. Try to purchase coins on the bottom and don’t be greed while selling. To have several winning positions with small profits is much better than waiting for super-gains from one position.
 8. To get insured that the signal will bring you maximal profit, diverse selling orders. It’s needed for a case if not all the targets indicated in the signals will be reached. The biggest possibility belongs to the first target. Chances to break the 2nd and the 3rd are smaller. Optimal trading volume should look like this: 50-70% for the 1st target, 20-30% - for the 2nd target, 10-20% - for the 3rd target.
 9.The last one and the main rule: never go all in! What you should do, is excactly the opposite. Always trade with low percentages of what you own. Every trade includes the risk to lose money, so a single loss should never be too destructive concerning your total assets.

I should be thankful for this information, this information is really helpful, especially for everyone who just started to trade or invest in cryptocurrency.
I hope there will be more of this kind of information so that everyone could learn together.

[Crown1]

Attention to people's emotions, when most people begin to feel crazy, then this time should be sold in time, and when most of people are beginning to despair, so this time is a good buying opportunity.

[felipe04]

buy a coins with 0.0001 btc each then in drops but again

good are btc,eth,neo,nano,xrp and xpm for investment and risk in gambling for knowledge too

The rules is good so study it if you read OP post

[Ghebung Masam]

thank you for the suggestions you have shared here, very easy to understand and very helpful to us, especially beginners. I will try it in my next investment or trade.

[ss890]

5. Don’t purchase currencies during intense growth.
 6. Don’t trade when you are tired or emotionally down.

The best of all point! We always loose money because of these two things primarily. Many people make mistake by buying huge quantities of altcoins and BTC when they are actually growing in value. Its a completely wrong method of making your investment. The thumb rule is stop buying when you see green spike or candles because that can eat out your margin of profit. You never know how long it may grow or may just pull down in blink of an eye.

Emotions is the biggest enemy in the crypto space and I would hate to see that one coming in my way and its better to keep both things away from each other. 

[coinmela]

we are following you posts and every time your posted good points and your posts helpful for all, this 9 rules is good for traders/investors, if I get merit in future I will give the this post one S marit thank you

[playboy654]

Crypto trading is more or like the gambling mostly based on our luck so we can't do anything other than managing our funds,first of all don't invest more money which is not affordable for you then only we can have the ability to take any level risks to make profits.

[Getcoinsite]

I BELieve that you have been in trading for long time,and being experienced in every step of the way,you have managed to gain and loss for many years.because what you have said is reliable and truthful while i have been in some negatives about your posts and advices.

But i want you to know that this is a big help for all of us,for future and for our crypto life.thank you for this Dude

[disbil]

There are many mistakes made by new trader or investors, since they don't have the necessary information to start their trading history.
But this post, can be used as the starting point for everyone who wish to start trading.

[Idrisu]

All this rules must be obey if you want to actually makes some money from your investments in cryptocurrencies.  Many people buy into bitcoin and altcoins when there are at a very high intensive level of buying and when the big players began to dump it on them then it becomes very clear to them that they have bought at the wrong time.