You CANNOT trade successfully without RISK-MANAGEMENT

[Sadlife]

Im more like a high risk and high reward type of guy, i've tried this technique in the past. I should never traded when price was high and in a key support price range. I guess the reason, why i did that is because of the FOMO i fear that when BTC price starts to bull i would have missed it but the reverse actually happened without putting any stop losses, i got rekt although my investment is not big that was all i have, it was still painful.

[sheenshane]

This is very important in trading if there is a "risk management". People have different fundamentals and techniques in having risk management not only in crypto trading even in a business just like an investment. The most I like is the "Loss prevention technique", this is very useful when you are minimizing your loss, instead of avoiding a risk completely.

But I haven't try to use any software about risk management. But I found this online article with helpful content, The Top 10 Risk Management Software Solutions.

[Darooghe]

Anyone can open trades that earn money and ones that lose money. The difference is how much you risk and how soon you close in and out of the money. Good risk management and trained judgement to make the process profitable. However, Risk management is like 80% but the other 20% being positive expectancy still matters. You can have 100% risk management and if positive expectancy is 0% you're still ruined. It's kind of like working out. Diet is the 80% but even without that 20% exercise, you won't lose build any muscle.

[moviebuff777]

I like to set rules for myself in trading such as never place a buy order will all my money. Only use 20% for a buy and save the rest for leverage in case the price drops.

[Taskford]

Correct since if you cannot manage the risk then you will end up sweating and panicking when dumping stage occurs that's why we need to learn on how to stop loss and placed the next position when the price is cheap. But this strategy is so sketchy so better proper knowledge and understanding is the first thing we need to have for this to get an excellent result.

[bitgolden]

Risk management may help a trader to prevent losses but it cannot do anything with the factors which are deciding the profit levels. I mean to say we need to follow risk managements along with high-end market research analysis. But, I guess most traders are not preferring to do analysis hence they are just gambling with their trading which makes them not to have risk managements. Yes, they are into trading by believing into their luck factors hence they never need any kind of managements.

You must need to cover all aspects of trading to have high precision results. But, when you are not strong with the core things of trading then you may ignore all the secondary things too. Still, you may manage your self as a surviving trader but there will be no guarantee for long term perspective.

[AniviaBtc]

I found lots of threads here on the reasons for losses or the ways to earn in the long term.

Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.

I have been losing a lot lately.
The market is just unpredictable specially with bitcoin. It moves from price to another and it cannot be seen even with technical analysis.
I do hands only and not using any types of bots and many times my emotions gets in the way.

Hundreds of dollars in every trade and I think I may stop for a while just to make a bigger come back later on.
Yeah, this might be helpful.

The person to blame is you, yourself. That is because of your wrong actions, wrong move, and wrong manipulation of your bitcoin. Practice critical thinking and planning for you to execute all your choices perfectly so that you'll avoid losing a certain amount of money. The best way is to learn from your mistakes and never lose hope. Although, having a break for a period of time will help you to reduce your stress and then make a better comeback.

[wajik-tempe]

Naturally. The first lesson/goal in tràding is not to eàrn, but to break even. And that's already the bare minimum. Although if you have a plan for losing money so that you can profit even more later on, as long as the probability of earning is more than 50%, you can probably risk it, as long as you can minimalize the losses as much as possible. I myself don't use any 3rd party software, just plain 'ol judgement for me. I make sure that even if I lose, the losses are at the bare minimum always, and if a choice presents to me a high risk high reward option, I most often would not go for it.

Yeah many people are misconception about the rule of trading itself, many new beginners traders are choose to hold their coins that already exprienced a big loss because they think they will sell it again when the coin is rise but in fact it won't, they already spent so much time holding the loss coin although they could sell it with losses and move to another coin to make profits.

[perla]

I don't have risk management beside of use capital that is not my daily money. So if i lose especially for hold bitcoin for long term, i wouldn't have big problem with it. Because for long term i don't need to think anything else beside bitcoin price and set up target and my emotion.

[ChrisPop]

Personally I don't agree with your statement that it is harder to save than to earn. If you have a little bit of financial education you can easily put your money to work for you at a relatively low amount of risk. For the average amateur investoe the returns won't be very high if you choose to invest in assets with a low risk like real estate or bonds.

Trading is a whole other endeavour than investing. You've got to have a viable edge first of all and then to implement solid risk management principles that protect your account and limit your behaviour. Losses will incur inevitably when you're a trader, risk management will enable you ro "absorb" those losses without much damage while you expose yourself to gains.

[Subbir]

You are right in saying that there's no success without risk possible to be a successful trader at the proper time to require the danger properly can try alright and be excellent at getting successful, it'll require tons of patience.
I agree with you that you cannot succeed unless one can take the risk.

[panganib999]

Personally I don't agree with your statement that it is harder to save than to earn. If you have a little bit of financial education you can easily put your money to work for you at a relatively low amount of risk. For the average amateur investoe the returns won't be very high if you choose to invest in assets with a low risk like real estate or bonds.

Trading is a whole other endeavour than investing. You've got to have a viable edge first of all and then to implement solid risk management principles that protect your account and limit your behaviour. Losses will incur inevitably when you're a trader, risk management will enable you ro "absorb" those losses without much damage while you expose yourself to gains.

I think what he meant by "save" is to break even, which is true, because people often forget to do so. They only focus on making profits, much so that losses seem inevitable for them, and this leads to continuous losses which in the end leads to bankruptcy. See, what you said about investing with a low amount of risk means to use proper "Risk Management", just like what OP has said.

I for one has never used other third party software to manage my Risk management. I have though asked for other traders opinions, specifically in my circle with regards to tips and tricks of Risk Management.

[justdimin]

Risk management is very important fact but at the same time it has insane amount of levels. For example being super safe and putting money into bitcoin and having stop losses, sell and buy orders etc etc, doing dollar cost averaging and many other stuff all make sure you are in a safe and secure investment, that is called risk management.

However, you can be leveraging 100x on bitmex and trying to make a lot of money but still have a level where you get out before it gets liquid is also risk management as well, you are risking more and you are getting rewarded more if you are right but that is still risk management. From the biggest and safest method to riskiest and most dangerous moves there is a lot of levels of risk management, you have to realize and pick the right one for you.

[Ethereums]

when it comes to strategy there is no bulletproof strategy i ve seen, any strategy has it edges i assume. Risk management is very important for every traders.
Just like me meddling with intraday trading for crypto is like storm, but when i took setup for mid term (5-10 days ), i found my sanctuary in there.
Not everyone can overcome their physicology in it, but when it does, u fund your own style and i believe not everyone had same style.
When it comes to my style, i stop my loss when it comes down to my 10% of my fund. I know it hard to stop it when u loss, but i prefer loss it at that point and no more trade until it comes to some low point which i analyst using price action before and news.

[Maslate]

You are right in saying that there's no success without risk possible to be a successful trader at the proper time to require the danger properly can try alright and be excellent at getting successful, it'll require tons of patience.
I agree with you that you cannot succeed unless one can take the risk.

I believe there is always risks in everything we do particularly in crypto trading because it's so unpredictable. And having a good risks management will ensure higher chances of making profits than committing losses. But since losses do happen inevitably, this is the reason why sometimes i tend to follow cut loss somehow.

[Kelvinid]

Investment=risk
If you are a risk-takers, crypto suited for you and can make it successful but of course we need to manage it seriously. Risk is not a thing we need to worry about but a thing we need to take seriously for this will be a reason for your fall. No wonder why a few traders will never succeed in trading is just because they know about trading, they take the risk without putting themselves into a direction which brings them to a losing ends.

[Shasha80]

Everyone who trades will experience loses, because trading is a very risky activity. Especially trading crypto which price movements
are difficult to predict. So from that I strongly agree with the article in the opening post that it's one key to success in trading is risk
management. Many people consider trading too simple to buy at low prices and sell it at a high price, but the reality says different.
So from that I am not surprised that many traders fail in the world of trading. So My advice is to first learn the knowledge about risk
management, then you will easily become a successful trader. Because you don't can only rely on analysis and research on the market alone.

[pajak666]

I found lots of threads here on the reasons for losses or the ways to earn in the long term.

Some of the threads are quite useful, but here I'd like to put special attention to risk management. Many traders, even those who use cool strategies lose. Everyone loses sometimes. This is a rule of the market.

I'm already 10 years in trading and can state that to save is harder than to earn, that's my position. So, always plan your trading system with a special attention to risk management.

Here you can read about risks and losses:
https://www.bitinsure.com/blog/?p=35

And also reasons not to rely fully on trading bots:
https://www.bitinsure.com/blog/?p=59

Probably after it you will pay more attention to risks. Hope this will be useful.

What types and methods of risk management you use? Any software? What risk limits do you set?

Let's share

Diversifying everything and everywhere is probably the solution that is closest to perfect in a vacuum.You want to be minimizing variance of basically everything: regulations, trends, centralization, CEOs dying in a car crash and what not. For first, I keep my money on many exchanges as well as most of it in cold storage. Even if they are big and will not collapse after hack, it may take some time to do investigation and repay customers so you'd rather not be left without your money for a few months. Then diversifying your portfolio into different assets and then your strategies so they do not correlate too much. There is many places it can go wrong so if you give yourself the biggest possible amount of lottery tickets you gave the best chance no to leave empty handed.

[Subbir]

You are right in saying that there's no success without risk possible to be a successful trader at the proper time to require the danger properly can try alright and be excellent at getting successful, it'll require tons of patience.
I agree with you that you cannot succeed unless one can take the risk.

I believe there is always risks in everything we do particularly in crypto trading because it's so unpredictable. And having a good risks management will ensure higher chances of making profits than committing losses. But since losses do happen inevitably, this is the reason why sometimes i tend to follow cut loss somehow.

First of all not have enough prediction knowledge basically cryptocurrency or trading i feel no need investment due to invest and loss they will be applied risk invest starting just small fund presumption have management knowledge. Moreover, it is better to stay away from investment.

[marcous]

Well, no matter how skilled a trader is without risk management, it will be fatal. because losses are a definite risk in the world of trading. only everyone is different when handling their loss. the point is we have to be wise in making decisions both when taking profits and targets in cut lost. And to be honest, I have never used a trading bot.