Trading Risk Management. Top-9 Rules

[Bit talk]

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.

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[manhont]

I am a long-term investor and violate many of these rules, nevertheless I have a good profit and I think that long-term investment is more profitable than trading

[victory.lil]

Wow this is really true, very correct advice, which seems from the personal experience of this person, I think that these rules can really help you with trading. But you still need not lose sight of the fact that trading is very risky.

[kartalgiunti]

The rules here are very clear and detailed. I think the most important rule is to be patient. Early and hasty steps can hurt us.

[kinki32]

10. Don't keep your investment on exchanges.
11. Don't follow to pump, don't play from news front in crypto

[thefaucetrunner]

what is the idea behind #4? What am I missing? What is significant about 20% of your deposit?

[ozols]

wow nicd article, thanks for this information, i hink it would be very helpfull for everyone

[Bittalk12]

I learn a lot on this post and unfortunately, i dont have merit to give. All of those advise are the opposite of what i did! Now my funds are trap in DRGN and went all in! I bought it at $0.90 and buy back at $0.87. Now it is much lower. I will definitely try to do this guidelines. Thanks dude! I already saved it to my notes.

[Gekkoo]

Good advice and overall deserves my respect, but i disagree with the first item, which mentions "Do not invest more than 20% of your deposit in an altcoin". I understand your vision and your knowledge and we are not to judge, but how do you want to earn a lot, if you are afraid of investing too much? Everything is proportional and fact in defining an amount to invest we can not create despair for more and that would be greed, a defect that teaches us how to lose quickly.

[BluRPie]

It seems that you like the figure of 20%. In my opinion, risking 20% of the total deposit is a much. I think that 5%, a maximum of 10% is a more reasonable strategy. All of course depends on the size of the deposit.

[BravO_o]

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.

Perhaps add another point. Always keep part of your funds in bitcoin, part in usd. You can always buy altcoins for bitcoin. And if bitcoin falls, you can buy it for usd.

[BIT WRLD]

Its really help this information for new investors and who is worry about loss in crypto market, this nine rules are correct and i will follow this for my safe trading and get profits in crypto market thank you   

[Tipstar]

Very well deducted.
You'll get these things with experience but it's better to learn from others mistake than to commit all of it yourself.
Not just tired or emotionally down but also don't trade when you are high or drunk. I did that mistake personally.

[katri]

i never follow these steps. all i know is purchase the coin when low value, hold it for a long term and if price reach to my target. sell it all. ussually i set the price when my capital will be double thats the time to sell everything. until it does not reach to that point i never sell. i am very patient in kind of business.

[ifanxu]

I think everyone understands the rules, but it's hard to keep the so-called rules in real situations.

[baduday1991]

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.

This is a very good rules I really agree with this hope all newbie here in cryptocurrency will see this to help their make a plan always spend 5% of your portfolio in trading and never go all in. Make a plan before go any trading buy in position and target sell position, it is short term, mid term or longer trading because a plan like this is to make sure you maximize your profit in your trade and will minimize your losses. Goodluck everyone.

[phamquangbinh]

I understand your vision and your knowledge and we are not to judge, but how do you want to earn a lot, if you are afraid of investing too much? Everything is proportional and fact in defining an amount to invest we can not create despair for more and that would be greed, a defect that teaches us how to lose quickly.

[thanhphank34]

Thank you for your advice.These advices is good for day traders - Who wants to gain the daily benefit.

[BIT WRLD]

this are very helpful for investors and who is worried about trading this rules is like tonic, i don' have S marits if i have will proved this post because seen your hard work in this post thank you 

[askmecrypto]

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.

Adding few more:

1. Never follow Pumps and Dumps
2. Dont trust strangers giving you signals in large telegram or discord groups, they are usually meant to dump on you.
3. Always do your research before investing
4. ICOs are good only if they have great fundamentals and are backed up with strong teams and advisory board behind them.
5. Do Not HOLD loosebags, come out of those if the market sentiments are negative.
6. Never chase a coin which is already pumped by over 50% in a day