You CANNOT trade successfully without RISK-MANAGEMENT

[carlfebz2]

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.

Yeah, this had been part of our lives where risk and decisions do involved.If you dont know how to handle it out then you would surely get wrong decisions in life.

Risk management is great factor to those people who do involve when it comes to finances.Handling out risk on a volatile market wont really be that easy and without
having a proper plan nor analysis including risk management then you would surely mess up along the way.

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[Apened]

Exactly, risk management is knowing your edges in handling your money. It is so easy to buy and sell but the mere fact is if wr don't know how to handle a certain fund and having no trading plan it maybe a cause of losing money. If we know how to have a proper risk management and a trade plan to entry it may lead us to be a successful trader.

[gabbie2010]

 A good advice by the OP in my trading journey so far risk management was my first priority before taking any trade, this had well secured my portfolio in any eventuality of losing any trade calculating risk to reward ratio is so Paramount and key to be profitable in a long run even with a non perfect strategy of course their is no holy Grail trading strategy .

[coin_1122]

We should always consider risk management whenever we do any trade because we should always manage the profit whenever we see any downward trend in the market. Risk management and Fund management both these things should essentially used by the trader in order to control their losses.

[chip1994]

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.


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

I usually do not use any software to manage my risk. I also do not have fixed risk tolerance levels. because I usually judge the market every day as another day. For alts with high pumpability in the short term, I would take more risk than alts without good signals. but generally I do not let any trade lose more than 10%, because I always choose the best prices to order and when the price breaks the trend, I only lose about 2-4%. That is the effect of studying TA well and understanding it.

[sovie]

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

Trading is not for newbies and for those who dont have proper knowledge of that. Greatest risk is start trading with huge capital without having any knowledge of that. I prefer HODL over trading since there is very little risk involved in this strategy.
https://www.bitinsure.com/blog/?p=59 this link is asking for username/password.

[bettercrypto]

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.

One of the most important lesson I've learned from my mentor is to have diversification of assets. You must not lend your money into one coin but your should buy atleast 3. Just like with putting up a business, you should also look for other because if ever there is a doom for your business, there is always another one that will support your necessity.

[PuertoLibre]

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

Trading is not for newbies and for those who dont have proper knowledge of that. Greatest risk is start trading with huge capital without having any knowledge of that. I prefer HODL over trading since there is very little risk involved in this strategy.
https://www.bitinsure.com/blog/?p=59 this link is asking for username/password.

Yes, it is tough and explaining the hardness of the trading journey to the new traders is tougher than this. The quick rick scheme is still dominant on the minds and people don't want to understand the fact: The easy money idea is the deal-breaker for the experienced traders and they always prefer to manage the risks with strong money management and diversification.

[Oceat]

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.

One of the most important lesson I've learned from my mentor is to have diversification of assets. You must not lend your money into one coin but your should buy atleast 3. Just like with putting up a business, you should also look for other because if ever there is a doom for your business, there is always another one that will support your necessity.

Most beginners will struggle in trading or even in business because they don't know how to diversify their money. This is how we should manage the risk of losing and this what they called as "plan B" or "in case of worst case scenario". This should be practiced by people who will decide to enter the market or the world of business.

[jostorres]

Risk management is always an important phenomenon as it helps peoples to lose their funds in excess amount. Traders gain success in earning profits from the high volatile markets which gives them immense opportunities to quickly make profits even in the bear markets so trading with cryptocurrencies  have been profitable for most of the traders.

But, never forget that these high volatile markets might even make you loose all of your funds if you do not consider a proper risk management. I personally keep stop-loss as well as stop-profit for each of my trade. Prices might pump and then it might experience hard dump which might even keep you at risk so it is always better to set a proper exit point so that you do not experience the dump arriving after the pump. Setting up trading bots who would speculate the markets 24*7 for you would also be an good option in order to reduce the percentage of losses.

[bastian466]

Trades only thinking about profit because his mind has been overcome by greed without thinking about the risk of being a bad thing for example he has a profit opportunity but because his mind only thinks of big profits then he delays to take profits then next time the price changes down then the profit opportunity is lost that is an example of trading  with a greedy strategy, so implementing risk management is important so as not loss
 and to lose profit opportunities

[huige007]

Risk management is always an important phenomenon as it helps peoples to lose their funds in excess amount. Traders gain success in earning profits from the high volatile markets which gives them immense opportunities to quickly make profits even in the bear markets so trading with cryptocurrencies  have been profitable for most of the traders.

But, never forget that these high volatile markets might even make you loose all of your funds if you do not consider a proper risk management. I personally keep stop-loss as well as stop-profit for each of my trade. Prices might pump and then it might experience hard dump which might even keep you at risk so it is always better to set a proper exit point so that you do not experience the dump arriving after the pump. Setting up trading bots who would speculate the markets 24*7 for you would also be an good option in order to reduce the percentage of losses.

A good backup plan or you can say the plan B of trading is very compulsory. Trading is not traditional as other jobs. In this you do not always get what you actually think about. Instead of crying on our lose and completely blank mind you should use extra precaution and be more intelligence in the time of loss. The decision made at that time would predict your future, if you have a positive plan B, may be that return your whole loss, if you will sit blankly, mourning on your loss that would break your heart permanently from trading.

[Hamphser]

even with a non perfect strategy of course their is no holy Grail trading strategy .

This aspect interest me because it true that no strategy is perfect against another but with a money management plan, a perceived bad strategy can be able to carry the negative to positive because of liquidity.

It's just how you manage the risk when investing in cryptocurrency even if the plan is not that perfect but with the perception that you want to minimize the risk losing your investment is a great way of thinking to a positive effect of your investment. Trading with care is just the same as handling your investment to a lesser risk.

[YOSHIE]

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

In artiker, risk management, there is something meaningful to take risks in trading, sometimes this is what many people don't realize, including me when trading in the market.

What's interesting is, it needs to be changed to overcome failure.
Namely "emotional" will damage everything we dream of, emotions can make someone lose concentration, ambition, and greed, as mentioned in the article.

I just found out about this, which made me lose, in the future I will fix everything, for the sake of my success. Thank you for the article.

[FanEagle]

Trades only thinking about profit because his mind has been overcome by greed without thinking about the risk of being a bad thing for example he has a profit opportunity but because his mind only thinks of big profits then he delays to take profits then next time the price changes down then the profit opportunity is lost that is an example of trading  with a greedy strategy, so implementing risk management is important so as not loss
 and to lose profit opportunities

This is a normal situation with most of the traders. We might wait for a specific price to reach even though the price already is in the dip but our greed makes us wait for the price to drop a bit more. But eventually, the price starts growing back which never gave you an opportunity to buy at the drip. In this case, you could properly study the graph by adding some oscillators to the graphs which would make it easy for you to understand the entry and exit points. Then find some better points to enter and name them Target1, Target2, etc.

Now, you can start learning more about trailing as it would help you in this situation. As soon as the price hits the Target1, your orders should be set to Target2 setting stop-loss to Target1. This will never miss you the opportunity to buy at an appropriate price.

[jazmuzika217]

Honestly I did not use any device as a risk management. I will only set a price value bracket when to stop to invest. Like when the coin price value will fall more than 60% of your capital I think it is the time liquidate. And the best risk management that each of us can easily apply is fact that you need to invest the amount that are ready to loss.

[tbterryboy]

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.

Yeah, this had been part of our lives where risk and decisions do involved.If you dont know how to handle it out then you would surely get wrong decisions in life.

Risk management is great factor to those people who do involve when it comes to finances.Handling out risk on a volatile market wont really be that easy and without
having a proper plan nor analysis including risk management then you would surely mess up along the way.

Actually, only the ones who have the guts to face risks are the ones who usually have profits.

There are no profits in the markets if you do not want to face any risk. I might agree there would be some sources to earn passive income without any risk but usually the profits there would be much lower as well as it might anytime turn into a ponzi scheme. Talking about trading specifically, we do involve a lot of risk.

Even some people might purchase coins at the peak which itself bought them a risk to never see their portfolio grow again but this is case with minimum people. Most of the peoples who have spend their years into trading have now gained immense knowledge and might easily point out the peak or dip which gives them the opportunity to fill their bags as quickly as possible considering the risks.

[palle11]

Honestly I did not use any device as a risk management. I will only set a price value bracket when to stop to invest. Like when the coin price value will fall more than 60% of your capital I think it is the time liquidate. And the best risk management that each of us can easily apply is fact that you need to invest the amount that are ready to loss.

In the real sense of it, your loss that you set should be worked with your balance because if you lose a greater percentage of your balance in a first trade and continuously losing such, you will see that your account will be off. At least 1 percent loss in your trade is recommended.

[gabmen]

Honestly I did not use any device as a risk management. I will only set a price value bracket when to stop to invest. Like when the coin price value will fall more than 60% of your capital I think it is the time liquidate. And the best risk management that each of us can easily apply is fact that you need to invest the amount that are ready to loss.

In the real sense of it, your loss that you set should be worked with your balance because if you lose a greater percentage of your balance in a first trade and continuously losing such, you will see that your account will be off. At least 1 percent loss in your trade is recommended.

Well he did say that a major aspect of risk management is simply to put in money that you can afford to lose. So in cases where you become too careless or unlucky, which will cause big losses on your capital, it won't hurt you that much. It's just about looking a few steps ahead. It's easier to manage the risks if you're not that afraid of losing all your capital.

[Paycoinzzz]

I have my own capital management strategy and it's quite risky. It seems that in my margin trading orders I never use stoploss. I learned about TA and realized that when its price reached the threshold and was about to reverse, I would enter the order. I don't use stoploss but only play for very small amounts, for example I have $ 100 then I only use $ 5 to bet. People often say I'm crazy but I don't think so. so many people have lost money because they put stoplosss too short and were hunted by sharks. so the strategy is to play with a small capital but hold a long position. The profit will certainly be greater than ever.