You CANNOT trade successfully without RISK-MANAGEMENT

[maydna]

Having 10 years of trading experience will make you become a professional trader, and that is not easy to do because you need to have a big effort to always learn about trading every day.

I read about the article, but unfortunately, I don't use bots to trade. I prefer to trade manual so I can improve my skills to have better skills in the future. Besides that, I cannot always monitor the bots that I will use because I need to have a VPS which can run 24/7 every day. I don't trade every day, so that is why I don't use the bots.

Risk management is something that we must have besides money management so we can manage the money we will use in trading, and we can prevent the big risk that can happen while we trade. And I agree with your article, and the most important for me is having good control of the emotion will give us a chance to prevent the big risk.

[DevilSlayer]

Risk management is required in every trader but why it is so important? Risk management have connection with planning your trade. You cannot just execute your trade if you do not have plan. Identifying the risk and rewards ratio is part of risk management in order for us to know if the trade that we will do have higher risk or it will give higher rewards for us. If it will give higher rewards than risks then that trade will give benfits for us.

[Savemore]

Diversification is a part of risk and management, we cannot just put our fund in one investment. Having risk and management will help us to diversify our funds. Those investors who do not diversify their funds are the one who keep losing in the market because of their good. The win that we can get if we will all in out funds in one investment is high but the lose that we can get is also high and that is why we should have proper risk and management to minimize our losses.

[Capt00]

I agree that saving is way harder than earning (my past trading experience always tells me so)

Sometimes we deeply understand the risk, but just don't really care about it and not manage the risk properly and when the bad time comes, we don't earn enough anymore and start losing capital.

That's very true, most of the time traders know and understand the risk but they don't mind it that is why they lose. Though losing in trading is inevitable knowing that the price is very volatile but by effective analysis of the risk and managing it well can minimize losses. In trading, it is very important that your decisions are as reliable as possible by considering all the factors and risks to ensure good results.

[nicolas1979]

Risk management is to reduce opportunity loss in big quality, this is the limit we can't pass or break. Some people avoid this knowledge because they don't want wasting time calculate the limit, this is valuable wasting time my friend. Risk management can running with disciplines and this is become our concern. People not break the limit but the change strategy in the middle of time without change the limit, that's also wrong. Trading is long journey, don't focus about profit only your safety asset is priority.

[kodtycoon]

i just think saving is a safe way to produce even though indeed, inflation and interest rates greatly affect currency exchange rates. so i think saving and trading also have risks and in this case trading will indeed have a greater risk of loss compared to saving and all of that will be easily overcome when we know how to manage risk or control well

[CryptopreneurBrainboss]

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

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

Every trader should be aware of risk management before picking interest in trading. Preferably taking courses on risk management should be considered an important part of understanding the act of trading. The diversification of assets is one of the ways to avoid losses although for the cryptocurrency industry, this technique is been misunderstood.

Assets that are related aren't worth diversifying since the market performance is directly influence by the same factor. Trading multiple altcoins is more risky than trading bitcoin or a particular Altcoin.  The whole concept of risk management is to avoid losses therefore anything that'll result to more losses than profit should be avoided by all course.

The used of advance trading tools like stop loss and buy limit can also be leverage on. The used of advance trading bot can also be considered if you're not an active trader constantly on your system 24 hours, 7 days a week monitoring the market.

[Gheka]

Risk management is required in every trader but why it is so important? Risk management have connection with planning your trade. You cannot just execute your trade if you do not have plan. Identifying the risk and rewards ratio is part of risk management in order for us to know if the trade that we will do have higher risk or it will give higher rewards for us. If it will give higher rewards than risks then that trade will give benfits for us.

Agree, risk management and analysis are always important factors that we should identify before we start trading on a target because as you say, this management allows us to see the chance of winning and the opportunity will be lost, a difference between these ratios, high rewards and low risks are what we should choose, instead of high rewards and high risks. And as soon as we know this ratio, we have more than half the chance to win while those who do not manage risk and rush to come, they are just risking their lives

[secone]

Of course we must handle Trading Like a handle Business, as businsessman you must doing research the market, potential and maximize your strategy to get maximal profit, also don't forget to learning any skill, pemikiran, reading chart, also reading news.
Calculate any economyc issue is a good option too, like trump and iran right now, its give effect to real market.

[alyssa85]

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.

The thing is betting your entire wad makes you feel good, especially if it comes off. You feel like the king of the world.

But eventually you will lose and lose the lot.

Risk management has two elements: 1) only bet 1/10th of your stash at a time 2) don't get greedy and take profits. In particular make sure you manage to withdraw your initial stake, so you are then only betting with your winnings.

[Janation]

Of course we must handle Trading Like a handle Business, as businsessman you must doing research the market, potential and maximize your strategy to get maximal profit, also don't forget to learning any skill, pemikiran, reading chart, also reading news.
Calculate any economyc issue is a good option too, like trump and iran right now, its give effect to real market.

I don't see any effect on Iran and Trump.

I mean, the "WWIII" is just an overstatement and I don't think it would be really that easy to just start like that. Iran dropped missiles in Iraq, the price did not drop at that point. In terms of risk management, people should really aware of how much they are spending or using in trading and investing. It is repetitive as it is but we should not invest what we can't afford.

[Subbir]

Of course we must handle Trading Like a handle Business, as businsessman you must doing research the market, potential and maximize your strategy to get maximal profit, also don't forget to learning any skill, pemikiran, reading chart, also reading news.
Calculate any economyc issue is a good option too, like trump and iran right now, its give effect to real market.

I don't see any effect on Iran and Trump.

I mean, the "WWIII" is just an overstatement and I don't think it would be really that easy to just start like that. Iran dropped missiles in Iraq, the price did not drop at that point. In terms of risk management, people should really aware of how much they are spending or using in trading and investing. It is repetitive as it is but we should not invest what we can't afford.

I also comply with Iran and trump isn't any effect cryptocurrency trading they're a crucial matter because they need nothing to try to to with this market. the matter between the two countries is that they need to manage it and that they are against one another.

[Magkirap]

Diversification is a part of risk and management, we cannot just put our fund in one investment. Having risk and management will help us to diversify our funds. Those investors who do not diversify their funds are the one who keep losing in the market because of their good. The win that we can get if we will all in out funds in one investment is high but the lose that we can get is also high and that is why we should have proper risk and management to minimize our losses.

Indeed having our money go into multiple things will help us maximize profit and at the same time minimize the loss that we can possibly get because of the diversification that we make but of course this thing is the OP's strategy or risk management and people can have different ways to lessen our risk we only need to do is to research about our way of trading on how we will make it less risky so that we can have more profit. Experience will help us identify our own way of trading and our own way of risk management

[isaac_clarke22]

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

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

Every trader should be aware of risk management before picking interest in trading. Preferably taking courses on risk management should be considered an important part of understanding the act of trading. The diversification of assets is one of the ways to avoid losses although for the cryptocurrency industry, this technique is been misunderstood.

Assets that are related aren't worth diversifying since the market performance is directly influence by the same factor. Trading multiple altcoins is more risky than trading bitcoin or a particular Altcoin.  The whole concept of risk management is to avoid losses therefore anything that'll result to more losses than profit should be avoided by all course.

~

Maybe taking courses is the missing part of my journey in trading, hmm. I just jumped into some random tutorials back in the day and did straight trading, although I agree that alts are riskier because they're pretty much drying up pretty quickly due to a lot of selling pressure rather than Bitcoin where there are pretty much many long-term hodlers.

[sisule]

Of course we must handle Trading Like a handle Business, as businsessman you must doing research the market, potential and maximize your strategy to get maximal profit, also don't forget to learning any skill, pemikiran, reading chart, also reading news.
Calculate any economyc issue is a good option too, like trump and iran right now, its give effect to real market.

I don't see any effect on Iran and Trump.

I mean, the "WWIII" is just an overstatement and I don't think it would be really that easy to just start like that. Iran dropped missiles in Iraq, the price did not drop at that point. In terms of risk management, people should really aware of how much they are spending or using in trading and investing. It is repetitive as it is but we should not invest what we can't afford.

Not really happen with war III because both countries never lost much money without get good feedback, look impossible they want attack each other without have good reason and why with world III, now look possibility seeing with country want to give space and available bitcoin become legal transaction payment and have get much benefit.

[ReiMomo]

That is right and this is a good post OP. Risk management is a part of our daily life when we are going to decide. We should know what those possible consequences will may occur of what we have decided to do. One of these, is that being greedy of traders, self emotion which can distract your mind to think which better. But I will not agree on trade successfully, no one will get success in trading, it may you encounter to much pain and barrier before you will learn.

[2double0]

Risk:Reward (RR) ratio of each trade is something that I am trying to learn since years but I am still not so good at it because the fact is, we cannot control our greed which comes ahead of the reward we are already getting and that is where we stop our understanding of risks that lie in the trade while we wait longer and either lose what we have gained already or get stopped out. Patience is the key for most here but I follow RR system and if understood correctly, I don't guarantee high returns but better gains come through your way.

[bitbunnny]

Everyone that was ever involved in any kind of investment knows that risk management is necessary. However, many are not aware of it and think they can avoid risk or they asses it in wrong way so the loss is often consequence of bad risk management.
Cryptocurrencies are special type of investment where risk is very much present, there is no guarantee for profit and you have to learn how to balance risk and your portfolio. But in that light I don't think that Iran and US situation poses some special risk to cryptocurrencies and I hope that will not turn over into some serious conflict.

[DoublerHunter]

That is a nice share of youtube video OP, that enlightened me on how to risk management will effectively work on.
In any form of investment, there should be a risk management because this is a part where you can avoid possible losses. And I think when it comes to crypto investment, you should give full risk management on it. Because it's kind of being highly volatile you might get a loss if you dont know how to manage risk. But being a successful trader, you need to face those barriers that probably you encounter in the future and never give up once you have been failed.

[Yamifoud]

That is a nice share of youtube video OP, that enlightened me on how to risk management will effectively work on.
In any form of investment, there should be a risk management because this is a part where you can avoid possible losses. And I think when it comes to crypto investment, you should give full risk management on it. Because it's kind of being highly volatile you might get a loss if you dont know how to manage risk. But being a successful trader, you need to face those barriers that probably you encounter in the future and never give up once you have been failed.

We are just be prepared for any circumstances that we ever face and brought into a challenge. In all businesses, trades and even to our daily activities it is been already involve risk. At all costs, we have nothing to worry about, we've been dealing this every day and we live it( and survive). It only we need to think wisely and be smart, we only suffer losses because of wrong decisions and that is what we need to work on to avoid from its recurrence.