Risk management , how ?

[Magkirap]

successful trading is about managing risk minimising it as possible  as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules  are there to minimise risks

When we do talk about minimizing risk then there would be lots on the list.

1. Never be greedy
6. Dont be emotional.
These are only the basics but actually a hard thing to be done.

 Things like this are given and actually are basic stuffs to remember when managing the risk. Just want to point out the Greediness, I mean it isn't the worst thing to contain when trading coz it can give you more than you wanted if handled properly in trading. Emotion, we've always talk about this one for the past years in trading on which everyone has to avoid including it with the present possession while trading coz it might lead to such emotion based decision.

4. Set stop loss

This is the topmost and a must priority on minimizing the risk in trading. Set your ending, always have the finish line in every situation where you will stop winning or losing neither of the two. As a matter of fact setting a stop loss is really helpful especially when you don't have much spare in trading.

Indeed and by that thing i can proudly say that i have manage to lessen and handle well all the risk i have been taking and i think the most important two word you need to do in order to avoid or lessen risk here in crypto world is to set goal, by setting a goal you will not do something without a purpose which leads to better decision because of the path you are taking and also this will help you stop greediness.

[Shimmiry]

successful trading is about managing risk minimising it as possible  as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules  are there to minimise risks

Studying is the best way to lessen any risks in trading. What to study? Those market / cryptocurrency you want to enter or invest in. Although studying and researching takes a lot of time and requires huge amount of patience, it would be worth it, as knowledge is your only tool to manage risks. Other than that, experiences would lead you to your best mentality and management in trading.

I suggest take time first to study the market you are entering and how to trade well, then take trading simulations to somehow have a little experience. And then try to invest and let your experience shape you.

[LUCKMCFLY]

~snip~

- In Trading the risk management varies according to the person, it influences many factors, even the emotional part, but leaving all these things aside, what works in trading is the following:

- If you risk enough balance or money, your earnings may be few, but after all they are profits.

- If you start with a low balance, whatever the reason, getting profits will not be very high, but all this adds up, it is beneficial.

You can not think of getting rich overnight, many mistakes of those who begin in this world, when failures appear usually withdraw.

My way of trading is making only 3 trades, where in those 3 if I lose 2, with 1 recovery and I remain in positive balance, of course that if you lose in the 3 you must change the plan, and not lose more than 10% .

[RealMalatesta]

Is it true that people really sucks at making strategies and plans in trading? What do you think is the causes of this? Greediness? Lack of knowledge? I think the number one thing that makes them to fail in trading is that they don't seek advice first to the professionals because they have many experiences to manage risks. Risk management is very crucial when it comes to cryptocurrency so every one should be aware of that. Most especially the people who really want to reach their goals, they want to take the risk by investing their money.

Even though we get much experienced or professional but yet, risk management would be an important subject for us unless and until we are linked with cryptocurrency trading. Crypto markets are much volatile which might show us huge profits but at the same time we can even face loss in the same manner.

The markets quickly move up and down which might not even give us the moment to sell of our coins at some stop loss. That's why setting a stop-loss each time your place a sell order is much necessary so that you would not have to face excess loss. You should have some backup plans in order to save your loss and quickly convert it into profits.

[worle1bm]

~snip~

- In Trading the risk management varies according to the person, it influences many factors, even the emotional part, but leaving all these things aside, what works in trading is the following:

- If you risk enough balance or money, your earnings may be few, but after all they are profits.

- If you start with a low balance, whatever the reason, getting profits will not be very high, but all this adds up, it is beneficial.

You can not think of getting rich overnight, many mistakes of those who begin in this world, when failures appear usually withdraw.

My way of trading is making only 3 trades, where in those 3 if I lose 2, with 1 recovery and I remain in positive balance, of course that if you lose in the 3 you must change the plan, and not lose more than 10% .

I don't agree with your first point. If you want to play safe then why 'cryptocurrencies'? Several financial experts have rated cryptocurrencies as the most risky type of investment. Investing in cryptocurrencies itself means that you have put your money on risk. Playing too safe like creating sell orders at buy price plus 1-2% or creating stop loss at -(2-3%) don't work in crypto market.

Here you have to take bigger risk to earn big and there is always the equal chance of losing money.

[Sebas.tian]

The only risk management in trading that I know much about is that of Patience. Many traders start the loses because of them lacking the basis of trading, which is the mindset to be patients while they trade. Basically, this is one of my secret to trade and have never disappointed me either from the beginning. Shirt and long-term trade are very much possible if traders imbibe the habit of be Patience towards their trades. No other risk management than this, that works for me through last year 2019 till date 2020.

[Maslate]

The only risk management in trading that I know much about is that of Patience. Many traders start the loses because of them lacking the basis of trading, which is the mindset to be patients while they trade. Basically, this is one of my secret to trade and have never disappointed me either from the beginning. Shirt and long-term trade are very much possible if traders imbibe the habit of be Patience towards their trades. No other risk management than this, that works for me through last year 2019 till date 2020.

I also want to add setting up your limitations. Trading is not like gambling so you need to prepare even for its worst. Invest only what you can afford to lose and learn to make stop loss when you think you are losing already. Trading will be more risky if you only trade without even knowing your target goal in the first place.

[Capt00]

Risk management can't just of simple talks and yet, it tested us when we are facing on it. May we could say it was easy to handle and manage risk but if we are in the actual scenario you can definitely say that was really really hard especially when you are deeply in trouble and can't even think the right thing to do. The only thing that I may see that could help us on how to manage risk is that we don't need to be rush, think wisely and act accordingly of what you think is right and appropriate to a certain thing. And the most important thing is that we have a concrete plan and follow it, and everything will be fine.

[Assface16678]

Risk management can't just of simple talks and yet, it tested us when we are facing on it. May we could say it was easy to handle and manage risk but if we are in the actual scenario you can definitely say that was really really hard especially when you are deeply in trouble and can't even think the right thing to do. The only thing that I may see that could help us on how to manage risk is that we don't need to be rush, think wisely and act accordingly of what you think is right and appropriate to a certain thing. And the most important thing is that we have a concrete plan and follow it, and everything will be fine.

In including into the cryptocurrency world, we are always facing the full of risk because most of the time, when we invest, we are risking our money because we cannot assure that the price of the coin will continuously be increasing. Also in trading we have a lot of risk by predicting the market price of the currency we are waging our money and the only chance of having a good income is just only fifty percent but always make sure all of we made that is related in the cryptocurrency is monitored and safe to avoid loss of profit.

[TitanGEL]

Risk management can't just of simple talks and yet, it tested us when we are facing on it. May we could say it was easy to handle and manage risk but if we are in the actual scenario you can definitely say that was really really hard especially when you are deeply in trouble and can't even think the right thing to do. The only thing that I may see that could help us on how to manage risk is that we don't need to be rush, think wisely and act accordingly of what you think is right and appropriate to a certain thing. And the most important thing is that we have a concrete plan and follow it, and everything will be fine.

In reality it is not easy, risk management is what we need specially if we are trading cryptocurrencies. I do not trade without proper risk management, I already know thr consequences if we do not have it. I experienced to have huge losses because I do not consider the risk and management before. I just trading without it that makes me vulnerable to losses. I cannot turn back time and it alrrady happened but I will never forget the knowledge that I get from my past trades.

[Dart18]

They say the higher the risk the more profitable it could possibly be.
But I doubt that already from the start.

Minimizing risk is something that could be done with a deeper kind of digging with every coin that you will buy.
First, choose them wisely.
Don't go barging into new ones without even asking some people about it or even the management behind it.
If you choose the popular ones though, you have already cut some risk into it.
Pick the right ones only, you do not want to have a long list of different coins which you could not administer anymore.

[joeperry]

Well it's up to you but you can do a 1:4 ratio of risk and reward ratio (I think it's the most common) where in you will risk 1% in order to win 4% so let's say that you have bought bitcoin @$0.1 then you should sell it if it becomes $0.09 and sell it if you meet the $0.14.

You can target more profit like 1:5 or up however the safe place is the 4 but it's up to you the higher the better but keep in mind that you should jump after you lose 1% well this is according to what I've read a few months back on an online course.

[sana54210]

To minimize the risks, diversify your portfolio in smaller parts like 5% to 10% and only invest those amounts in any trade you want to perform. This would help you save excess loss and would also keep on giving you profits. You can even invest in variety of coins by this method because you would really save a lot of your capital in order to get your hands on maximum coins.

The more coins you buy, the more profits you might afford collecting but you need to set stop-loss for each coins because we would never know when can the price dump. Being patient and entering the markets at correct time might lead you to quickly make profits but always remember that you should never enter a market if it seems like a wrong entry point. Never check your luck at these times.

[Gozie51]

Do note that risk management is not a way to stop losses, but to minimize losses as much as possible. This doesn't mean that you would never take losses. There would naturally be times you would and the plan is to lessen the losses you could incur.

Yes and that's why there's no perfect strategy, possibility to get loss always there and minimize it is the answer. People will give you answer split your asset into several coin, join legit investment program or using martiangle money management. The real answer is stop loss and decide realistic target before enter the market. Accept the result and fix it " after " closing not before that.

Before stop loss, I think there is a trading pattern or strategy that is paramount to be successful. This is reducing our lot size that we want to trade with. The higher risk we take to gain is also how our accounts would be blown up if anything goes wrong. So if we take our trade gradually, we will keep accumulating profit.

[Yatsan]

Do note that risk management is not a way to stop losses, but to minimize losses as much as possible. This doesn't mean that you would never take losses. There would naturally be times you would and the plan is to lessen the losses you could incur.

Yes and that's why there's no perfect strategy, possibility to get loss always there and minimize it is the answer. People will give you answer split your asset into several coin, join legit investment program or using martiangle money management. The real answer is stop loss and decide realistic target before enter the market. Accept the result and fix it " after " closing not before that.

Before stop loss, I think there is a trading pattern or strategy that is paramount to be successful. This is reducing our lot size that we want to trade with. The higher risk we take to gain is also how our accounts would be blown up if anything goes wrong. So if we take our trade gradually, we will keep accumulating profit.

Reducing the size of your portfolio is indeed one of the best way to reduce the risk of losing your money, Just focus on coins that actually have a good reputation like bitcoin, eth or xrp. Reducing your portfolio will make it easier to manage and I'm sure it will be easy to have on profit on those coins.

I have a tip for all of you guys, Buy low and buy even lower. If your trade is losing, instead of waiting you can buy on the dip, in this way you can maximize your profit if the coin started to pump.

[Kelvinid]

It is a gonna be a big challenge but yet, can be manageable. It is only hard when we are not in control of ourselves and not knowing what exactly we are doing. Because in the first place, this is the thing we need to know before investing crypto but yet, we never thought like that as we know that it can be fine all the way to go. But it won't go so easy and the market becomes volatile which makes people get hard in dealing with the risk that comes to them.

Risk management can be of long-term work, not just of today or tomorrow but it gonna be needed all the time until we end our crypto journey. All I can say is that we need to think twice and ask help in a situation that we are undecided and really hard to decide as well.

[traderethereum]

successful trading is about managing risk minimising it as possible  as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules  are there to minimise risks

The methods/rules to minimize risks:
1. Don't use big money to trade if you don't know how to trade with the right.
2. Select the coin, which is in the top 50 coins, so that you can analyze the moves of the coins.
3. Don't greedy to try to make a bigger profit if the situations are unpredicted.
4. Take your profit while you can, and don't wait for another bigger profit because that will not always happen.
5. Leave the market if you think the market cannot move well.
6. Don't force yourself to trade if the coin already moves to the higher price.
7. Don't forget to analyze the coins moves before you buy, and don't panic to buy or sell if the price of the coin is moved.

I think that is some of the methods that you can use to minimize the risks. I think the other members already share their method to reduce the risks, and I am sure that you already know or have your way to prevent the big risks.

[fullhdpixel]

Risk management could be overdone as well and should be really careful about it. Nobody wants to lose money, nobody wants to buy a coin and watch it go down, that is not something people would practically do since it is basically the most easiest way to lose money, however that could be the biggest trouble but not the only one.

The coins you didn't buy because of risk management could be a trouble as well, what if the coin you wanted to buy but wasn't certain suddenly makes 20%+ increase in price?

Those are missed chances and loss on profit that you never really considered before. Even Warren Buffet himself said multiple times that he wasn't really upset over the money they lost, but upset over money they could have made because risk management was overdone on them.

[Hilsgort_T]

I think it’s important for you to understand that most strategies that really make a profit will not work if many people use them. Therefore, people who find such strategies in 99% of cases do not talk about it.
Therefore, for myself, I see the only way out - to monitor the market and try to find my own strategies that will work.

[quality.crypto]

I think it’s important for you to understand that most strategies that really make a profit will not work if many people use them. Therefore, people who find such strategies in 99% of cases do not talk about it.
Therefore, for myself, I see the only way out - to monitor the market and try to find my own strategies that will work.

Strategies will work for people who are holding efficiently in the market during at the time of fluctuations, strategies will not work on a daily basis and in some cases, we have to consider the market situations based on that we will make profits. Risk management is a completely different kind of management where we should cover it when we are in loos.