What Is Bitcoin Trading and Why It's risky?

[densuj]

no risk - no profit   

Basiccaly risk and profit are directly proportional on trading and on trading we can manage the risk and we can manage the profit too,  everything depend on the system of trading that be made by the traders them selves. If the traders doesn't have it, the trading will become more high risk.

[harizen]

no risk - no profit   

Basiccaly risk and profit are directly proportional on trading and on trading we can manage the risk and we can manage the profit too,  everything depend on the system of trading that be made by the traders them selves. If the traders doesn't have it, the trading will become more high risk.

Obviously if a person wants do to trades, they must learned how to managed those possible risks so that they can accompanied their trading luck with their trading decision. And if the waves favored to them due to the fact that they able to managed those risk, they can see a sure profits at it's finest and even can bring them into long term trading.

It's not that a trader will completely abolished all the risk involved, it's impossible, they will just do some wise choice out of their deep analyzation in order to ; minimize the loss or secure profits without being a greed one.

[X-ray]

It is only risky if you are not aware of the market or if you don't know how it works. If you hae all the knowlede to trade then you an do it without a risk. Anyway, all things involving money has a risk so youjust really gotta do what you want to do. There is no point in not risking if you want to move forward.

yes that is a fact that all kind of investing are risky but you can minimize your risk, if you have sound knowledge about in which you are going to invest your money or going to traded.

to decide where you're going to invest also such a hard thing to be done,you may driven to the wrong place or project by some fudders and that's why better learn first before investing your money into some kind of project or business

no risk - no profit   

that is natural law

[wxa7115]

Trading could be risky if you don't have much knowledge about it and no experience. The main rule is buy low and sell high but that is not always so easy.
Sometimes you can make wrong decision calculating when is the best moment to buy or sell and then you can lose the money.You have to watch the market and price all the time. Arbitrage trading could be especialy risky because you have to react very fast and sometimes you just don't have the time. More you invest, more you put at risk.

Some of the arbitrage trades are being done by bots that can react a lot faster than any human very soon most of the arbitrage opportunities are not going to be there for human traders anymore.

I think the majority of traders are usig now bot so that it can help save time and at the same , it is more convenient to buy/sell at the price that you want.

bot is very helpful to save our time. but to get the most I think the manual is the best way.
because we can freely determine any action that we will do. it makes us more rights in any outcome that we can.

Trading  bots  are  only good  to  use  if  you are already expert or experienced  on  trading  because   bots are  just for  automation  on  your trade  and if  youre a  newbie  you  cant  hardly understand  on how to use that  bot  so its  not really advisable.  Manual trading  is good  because you will learn  with every trades

that's completely true those who's using bot are the one's that really understand the market movements as they already expecting what particular ways the price will go, i think there are some expert who entrusted their trade to a bot but they still checking and changing it from time to time depending on how the market will move.

Then bots are not as useful as we may think since you still need to babysit them trough the process of trading, personally I will prefer to trade with out them.

[leeloo]

Why are bots useful? For one, a good bot will handle much of the gory details (proper position sizing and money management, executing stop losses, etc), and it can place orders much faster (and without making silly mistakes) than a human can.

If you came up with a good idea for a trading strategy, implemented it as an algorithm (*), backtested it to find the "optimal" parameters (i.e. you curve fitted it to historic data; don't do it too much), then backtested it with a wide range of parameters around that optimum (and it still worked), then you just got a life and a lot less headaches.

(*) If your trading strategy can't be automated, then you don't have a strategy, period.

[wxa7115]

Why are bots useful? For one, a good bot will handle much of the gory details (proper position sizing and money management, executing stop losses, etc), and it can place orders much faster (and without making silly mistakes) than a human can.

If you came up with a good idea for a trading strategy, implemented it as an algorithm (*), backtested it to find the "optimal" parameters (i.e. you curve fitted it to historic data; don't do it too much), then backtested it with a wide range of parameters around that optimum (and it still worked), then you just got a life and a lot less headaches.

(*) If your trading strategy can't be automated, then you don't have a strategy, period.

There is some truth to your statements but like always there are exceptions, for example the Mexican peso lost value during the US election, how could a bot been able to predict such an outcome? Anyone that watched the elections knew why but it is not something that can be read in a chart or something.

[raven7886]

no risk - no profit   

Basiccaly risk and profit are directly proportional on trading and on trading we can manage the risk and we can manage the profit too,  everything depend on the system of trading that be made by the traders them selves. If the traders doesn't have it, the trading will become more high risk.

Yes, risk and profit are directly proportion, if you are taking much risk your percentage of profit increase, to me I think risk is involve in all kind of trading and there is not a sing  trading where no risk is involve.

If you want to make money you have to take risk, without facing it you cannot make money, in trading you can reduce your risk of making money if you have some good experience and skill of trading.

[carlfebz2]

no risk - no profit   

Basiccaly risk and profit are directly proportional on trading and on trading we can manage the risk and we can manage the profit too,  everything depend on the system of trading that be made by the traders them selves. If the traders doesn't have it, the trading will become more high risk.

Yes, risk and profit are directly proportion, if you are taking much risk your percentage of profit increase, to me I think risk is involve in all kind of trading and there is not a sing  trading where no risk is involve.

If you want to make money you have to take risk, without facing it you cannot make money, in trading you can reduce your risk of making money if you have some good experience and skill of trading.

All investments do really have risk and trading is not excluded on that because its already an investment which you will definitely put up money to gain money because if you don't put risk on it  you will not earn something same as you mentioned too. Experience does really matter to be profitable on trading  and which really helps to lessen to risk compared on trading blindly.

[leeloo]

Why are bots useful? For one, a good bot will handle much of the gory details (proper position sizing and money management, executing stop losses, etc), and it can place orders much faster (and without making silly mistakes) than a human can.

If you came up with a good idea for a trading strategy, implemented it as an algorithm (*), backtested it to find the "optimal" parameters (i.e. you curve
fitted it to historic data; don't do it too much), then backtested it with a wide range of parameters around that optimum (and it still worked), then you just got a life and a lot less headaches.

(*) If your trading strategy can't be automated, then you don't have a strategy, period.

There is some truth to your statements but like always there are exceptions, for example the Mexican peso lost value during the US election, how could a bot been able to predict such an outcome? Anyone that watched the elections knew why but it is not something that can be read in a chart or something.

It couldn't. Yes, there are legitimate foreseeable reasons to cut back on risk exposure: the US election, brexit, etc.

But then again, maybe it wouldn't need to. A good strategy can recognize volatility is going up and reduces positions to reduce risk. Even better (and maybe more relevant to the calm before the storm before big events), it could see volatility is frozen to death, so it would assume something may be about to blow up, thus reduce positions proactively (don't ask me to implement that one just yet though ; it's not easy to figure out how to place those kind of lines.)

Robust strategies are distinguished by how they manage money and risk exposure, not how well they can "predict." If you size your positions well and have solid exit rules, you can make money even if you randomly enter just about anything; entry rules ("prediction") may help to avoid idiotic mistakes, get a little better edge, but it can't drive a strategy by itself.

Oh by the way, predictions don't work. Don't get me wrong: predictions do work most of the time; it's just, when they break, they break spectacularly. This is why, in a fundamentally unpredictable environment, trend following is better than mean reversion: the first is based on limiting your downside, the second on freediving dips (and you oxigene is running out.) Let's also not forget that trend following has an unlimited upside, while your upside is by definition capped for mean reversion. Basically, trend following uses unpredictability to extend the right tail of the return distribution, while mean reversion tries to instead push the mode to the right, while pretending that long left tail (a.k.a. "blowup") does not exist.

Marrying the two to an extent is a good idea, though: follow the overall trend, but scale in and out using the lows and highs. Now that is something you don't want to manage manually even on less fast paced markets than crypto.

[PhilPrime]

Hello folks!

I'm thinking about starting to trade with Bitcoin, but I see people saying that It's risky & almost like gambling.

I think that I mis-understand the meaning of trading.

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

I would really appreciate If people clarified more! Thankx

Yes it is really like that the risky part is the transaction that will hapoern . Like to whom you will trade your btc . He might scam you. Anyway just have a proper conversation and be intelligentbenough in strategies in good trading.

[leeloo]

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

Omg this is so adorable

There is no rule that says the thing you bought can't go straight to zero without ever trading higher than the price you bought it at.

[marcuslong]

Absolutely agreed. And more, beside knowing about trading and how markets works very important thing to choose right market platform or broker. These things bring some risk too.

It's really good that you know how to understand the graph on the market and you need to know where to buy and when to sell your coins because if you don't know you can lose your bitcoin or your capital in bitcoin important things is always keep your eyes open.

[noictib]

Hello folks!

I'm thinking about starting to trade with Bitcoin, but I see people saying that It's risky & almost like gambling.

I think that I mis-understand the meaning of trading.

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

I would really appreciate If people clarified more! Thankx

Actually it is not a work of risky way but it needed a long patience instead of sudden profit .
I am in trading from 4 month and my experience is saying always put your sell  order on definite amount on advance . Secondly your advance order for sell should or price 40% more than your buy price .

[leeloo]

Actually it is not a work of risky way but it needed a long patience instead of sudden profit .
I am in trading from 4 month and my experience is saying always put your sell  order on definite amount on advance . Secondly your advance order for sell should or price 40% more than your buy price .

What do you do if the price doesn't go up 40%? For example, if it falls 80%? Not happy.

How will you feel if the price goes up 200%, but you sold at 40%, because that was your "target"? Not happy.

[clickerz]

Absolutely agreed. And more, beside knowing about trading and how markets works very important thing to choose right market platform or broker. These things bring some risk too.

I really like the illustrations here. This is the basic reactions of people with price movement on trading. But also remeber the Accumulation stage and Distribution stage.

It's really good that you know how to understand the graph on the market and you need to know where to buy and when to sell your coins because if you don't know you can lose your bitcoin or your capital in bitcoin important things is always keep your eyes open.

That is true since trading is also risky and tricky. It needs a carefull analysis too.

[wxa7115]

Absolutely agreed. And more, beside knowing about trading and how markets works very important thing to choose right market platform or broker. These things bring some risk too.

I really like the illustrations here. This is the basic reactions of people with price movement on trading. But also remeber the Accumulation stage and Distribution stage.

It's really good that you know how to understand the graph on the market and you need to know where to buy and when to sell your coins because if you don't know you can lose your bitcoin or your capital in bitcoin important things is always keep your eyes open.

That is true since trading is also risky and tricky. It needs a carefull analysis too.

That graphic is pure genius I LOL a lot with it but in a serious note we must understand even if you had all the technical skills in the world it does not mean you have the right character and personality to ride the ups and downs of the market, you need a very special personality to do so.

[leeloo]

That graphic is pure genius I LOL a lot with it but in a serious note we must understand even if you had all the technical skills in the world it does not mean you have the right character and personality to ride the ups and downs of the market, you need a very special personality to do so.

Aaaaand this is the most important reason that I'm for algorithmic trading: I do NOT have that kind of personality, but I can sure formalize a strategy and leave up the stressful task of executing it to a machine.

[socks435]

Absolutely agreed. And more, beside knowing about trading and how markets works very important thing to choose right market platform or broker. These things bring some risk too.

I really like the illustrations here. This is the basic reactions of people with price movement on trading. But also remeber the Accumulation stage and Distribution stage.

It's really good that you know how to understand the graph on the market and you need to know where to buy and when to sell your coins because if you don't know you can lose your bitcoin or your capital in bitcoin important things is always keep your eyes open.

That is true since trading is also risky and tricky. It needs a carefull analysis too.

That graphic is pure genius I LOL a lot with it but in a serious note we must understand even if you had all the technical skills in the world it does not mean you have the right character and personality to ride the ups and downs of the market, you need a very special personality to do so.

The only problem in trading i think patience if you do not have a patience in trading you will lose..  because bitcoin price is unpredictable and if you are not smart and thinking that the price will going to dump mor just like in illustration the man who has no patience he sell his bitcoin for low price. instead of waiting more time that the price will go back to normal or increase more to make a profit..
So patience is the solution if you are in trading, yeah it is risky if you do not analyze the movement..

[serjent05]

The only problem in trading i think patience if you do not have a patience in trading you will lose..  because bitcoin price is unpredictable and if you are not smart and thinking that the price will going to dump mor just like in illustration the man who has no patience he sell his bitcoin for low price. instead of waiting more time that the price will go back to normal or increase more to make a profit..
So patience is the solution if you are in trading, yeah it is risky if you do not analyze the movement..

Yeah patience is always the problem in trading.  Not only the lack of patience is the problem but too much patience will make you left by the train too.  There are certain cases that holders were left bagholding a worthless altcoin due to waiting too much.  Maybe it driven by a greed or a miscalculated prediction.  But waiting is patience and this time there is too much waiting.  So I think patience and timing is the best key in trading, you lack one , you will fail miserably.

[OrangeII]

Hello folks!

I'm thinking about starting to trade with Bitcoin, but I see people saying that It's risky & almost like gambling.

I think that I mis-understand the meaning of trading.

For me trading Is for EXAMPLE, buying Bitcoin when It's at 550$ and selling It when It's at 670$. This Isn't risky because If Its value doesn't Increase, you'll just have to keep It until It gets higher enough, Is this trading?

I would really appreciate If people clarified more! Thankx

Actually it is not a work of risky way but it needed a long patience instead of sudden profit .
I am in trading from 4 month and my experience is saying always put your sell  order on definite amount on advance . Secondly your advance order for sell should or price 40% more than your buy price .

I guess all that can make an income on the internet has a risk level of each. Well, according to my experience, trading is one way to make money on the internet that have a fairly high degree of risk if you do not have knowledge about trading. before trading, you have to learn about it, even very many trading demo version made for beginners. you have to learn to play the trading prior to play it, because it would be risky if not done