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Author Topic: What can we do to minimise the risk in trading  (Read 684 times)
CryptoBeast.mf (OP)
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April 19, 2020, 03:39:24 AM
 #1

As my title is newbie but i have experience with the trading so there are many things which we should do and avoid while trading.
As we all know that the basic rule of trading is to buy any coin as its possible minimum price and sell it at the possible highest amount to gain the profit.
So here is the things which we should do in trading,
1. Monitor the bearish and bullish market carefully
2. Follow the trends going around the crypto world
3. Invest only that amount which we can bear to loss.
And the following things we should avoid
1. Greed while trading
2. Keep the emotions away from trading
3. Don't invest in dump coins

This is my experience which i write with clear words and what your experience and addition in this post.
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April 19, 2020, 01:11:07 PM
 #2

Also:
4. Trade only where there's good liquidity.
5. Make sure you have set stop loss at least when you sleep.

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cryptocointrade.com
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April 19, 2020, 07:25:53 PM
 #3

Only Invest What You Can Afford To Lose
Diversify: Never Put All Your Eggs In One Basket
Don’t Try To Make Profit In Every Trade
Don’t Be Too Greedy
Don’t Have Fear Of Missing Out (FOMO)
Maximize Your Winning Trades
Always Learn From Your Trading Mistakes
Minimize Your Losses And Set Stop Losses
Reduce Emotions And Stay With Your Strategy
Sell The News And Buy The Rumors
Findingnemo
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April 19, 2020, 07:35:59 PM
 #4

FYI, we can never predict the bearish and bullish trends until it happens so all we can do is the analysis which is based on different things like technical analysis, news influences and whales manipulation or any crypto related developments, adoptions,etc.

So what we can really do to minimize our risks of losing our capital is to use stop-loss features so we can get away from minimum loss if there is a huge dump on the market but I won't suggest using it while the market is in swinging position.

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thecodebear
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April 19, 2020, 09:47:00 PM
 #5

Only Invest What You Can Afford To Lose
Diversify: Never Put All Your Eggs In One Basket
Don’t Try To Make Profit In Every Trade
Don’t Be Too Greedy
Don’t Have Fear Of Missing Out (FOMO)
Maximize Your Winning Trades
Always Learn From Your Trading Mistakes
Minimize Your Losses And Set Stop Losses
Reduce Emotions And Stay With Your Strategy
Sell The News And Buy The Rumors

By "Don't Try To Make Profit in Every Trade" I assume you just mean sell for a loss if the market drops hard instead of having to wait for the market to rebound from a correction?
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April 19, 2020, 10:41:25 PM
 #6

As my title is newbie but i have experience with the trading so there are many things which we should do and avoid while trading.
As we all know that the basic rule of trading is to buy any coin as its possible minimum price and sell it at the possible highest amount to gain the profit.

Buying low and selling high has always been the wish of every cryptocurrency trader. however, it is not that easy, as knowing the lowest price point is among the difficulties involve in trading, often atime when we buy coins, we do think we bought at the bottom only to see the dip get dipper and same goes for selling high. When a coin is on the move, it is hard to predict if it will keep going aredrop in value. The trading guide in your write up is really an insightful one and i believe they will help in maximising  more profits

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April 19, 2020, 10:53:20 PM
 #7

Let me add to your list
4. Sell and don't look back, on any trade you have executed.
5. Don't join to spread FUD, adding to that stay away from P&D telegram group or Channel.

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April 19, 2020, 11:12:03 PM
 #8

As my title is newbie but i have experience with the trading so there are many things which we should do and avoid while trading.
As we all know that the basic rule of trading is to buy any coin as its possible minimum price and sell it at the possible highest amount to gain the profit.
So here is the things which we should do in trading,
1. Monitor the bearish and bullish market carefully
2. Follow the trends going around the crypto world
3. Invest only that amount which we can bear to loss.
And the following things we should avoid
1. Greed while trading
2. Keep the emotions away from trading
3. Don't invest in dump coins

This is my experience which i write with clear words and what your experience and addition in this post.

Minimizing risk? This been the hardest part and cant really be attained easily by a certain trader unless if you do have trading for a while than on just starting up.
Yeah those points you do have mentioned are indeed needed but want to add up;
•Handle out emotion
•Dont force to be profitable
•Always seek out the best time to get in and get out
•Dont let yourself get Fomo'ed or affected by Fud

Actually its an easy thing to say but really hard to be done but due to experience you would able to do these things.

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April 20, 2020, 12:48:53 PM
 #9

It is important to understand that trading outperforms most activities.
This is a complex and extremely stressful intellectual work with variables that are sometimes completely unpredictable if we are talking about crypto trading.
The higher your risks - the greater the chance of losing a large amount, so trade a small percentage of the deposit to minimize them.

There are a lot of newbies today having trouble in the world of trading because there are a lot of people who make more money but do not have the capability to make proper trading by that it cause too much loss to their income. One of the basic needs into the world of trading is always spent some time to learn something into the world of trading because this is the most essential thing you need to identify if you are going to make an income or not next if you go into the live trading apply all the learnings you gain and what if you lose? It is good too because failure is the best teacher and a person who experiences losing makes more motivated to do something to pay back their funds. You will better follow the trend too because by that you can get a lot of ideas and what do you need to do. There are a lot of people who make some double their trade when they lose and still it depends on you if you will follow that but for me, it is quite risky because not all the time the luck is yours this may cause double your loss.

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April 20, 2020, 01:57:55 PM
 #10

Minimizing the risk in trading requires discipline, and when I said discipline it includes a lot more of your personal attitude towards the trading market. One is the patience, how patient are you when it regards to trading? Second is the involvement of emotion, first things first you need to react technically in trading and not emotionally, let your brain decide not your heart. Last is the knowledge you have, how deep is your knowledge when it comes to trading and it should be fit with your trading style or strategy you need to be more focus on a single type of trading. The volume and liquidity of the trading platform can also add to minimize the risk of trading.

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April 20, 2020, 02:36:36 PM
 #11

Does not trade count? Kidding aside, the premise of minimizing risk stems from how much you're willing to learn and study. Even knowing not to greed isn't enough since even if you greed, as long as you know the ins and outs and can confidently tell apart when a coin is going up or down, having a bit of greed is fine. Just don't let it overwhelm you since as well all know, it could lead to you basically being bankrupted. As long as you research about the market volume, current price, total supply, movements of the coin in 24h etc, etc, profit is bound to see you, maybe small but it's profit nonetheless. It may not happen at the start, but well, any trader is prepared enough to actually lose money.

R


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April 20, 2020, 02:37:44 PM
 #12

~
3. Don't invest in dump coins
What exactly do you mean by "dump coins"? Are you talking about shit coins?

If so, how do you define them? I think this is subjective that's why I'm asking.

Others might also think that you are referring to coins that has been recently dumped hard. I'm not sure we should be telling new traders to stay away from them not knowing the reason it was dumped.
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April 20, 2020, 02:43:20 PM
 #13

1. Monitor the bearish and bullish market carefully
2. Follow the trends going around the crypto world
3. Invest only that amount which we can bear to loss.
And the following things we should avoid
1. Greed while trading
2. Keep the emotions away from trading
3. Don't invest in dump coins
Yes, just stick with basics. If you are more focused on maximizing your chances for making profits then you can simply minimize the risks. Because, risk is inversely proportionally related to profit levels Wink.

Monitoring market always and going as per the trend of the markets are basics of technical analysis. It means you do not need to work hard on minimizing your risks but you should work on maximizing the opportunities to crack profits out of market. When you focus on more depth in technical analysis then you will go achieving what you actually looking for without bothering about how to minimize/eliminate risks.

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April 20, 2020, 04:31:35 PM
 #14

~
3. Don't invest in dump coins
What exactly do you mean by "dump coins"? Are you talking about shit coins?

If so, how do you define them? I think this is subjective that's why I'm asking.

Others might also think that you are referring to coins that has been recently dumped hard. I'm not sure we should be telling new traders to stay away from them not knowing the reason it was dumped.

Definitely he do talks about those coins which had been dumped to the floor which simply talks about shit coins or to those coins which do have less liquidity.
We know that diversifying is preferable but choosing other shit tokens or coins should really be out of the check list but there are still people who do blindly
take risk into these tokens where it do result on loss of money.Minimizing risk is easy to say but when you are on the actual situation then doing these things are
really hard but you can get used to it when you do already have experience into the market.

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April 20, 2020, 05:47:18 PM
 #15

Minimizing risk starts with minimizing profit which people do not really want. They want to both have less risk and also still make a 100% profit.

You can't really do that, if you really want to minimize any risk at all, open an account in anywhere that has USDT and figure out how much the trading fee's are and put up orders that means if you buy lower than certain cents on the dollars you profit and you sell cents over a dollar profit and just hope that it hits, that is as little risk as it gets and if you did the math right 100% guaranteed profit for you right there, however that would probably happen maybe once or twice a year so you would end up with 1% profit for the year, which is not zero, all you wanted, and involves no risk, yet no profit neither. Minimizing risk is not really always a great idea because of this.

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April 20, 2020, 07:34:58 PM
 #16

That number 3 is important. That you made comment about what you can bear to lose but sometimes, it is not that we can bear to lose it really but we take unnecessary risk that we can bear but they are unnecessary. Trading is what is suppose to be gradual to accumulate gains but we are in rush to take risk we think we can bear its loss.
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April 20, 2020, 08:48:02 PM
 #17

As my title is newbie but i have experience with the trading so there are many things which we should do and avoid while trading.
As we all know that the basic rule of trading is to buy any coin as its possible minimum price and sell it at the possible highest amount to gain the profit.
So here is the things which we should do in trading,
1. Monitor the bearish and bullish market carefully
2. Follow the trends going around the crypto world
3. Invest only that amount which we can bear to loss.
And the following things we should avoid
1. Greed while trading
2. Keep the emotions away from trading
3. Don't invest in dump coins

This is my experience which i write with clear words and what your experience and addition in this post.

You have stated very important points to follow while trading, but i have an addition.
As a trader, to minimize risk in trading, you need to understand the market emotions, you need to understand what the market is doing at that point in time.

That will guide your core decisions to either join a trade; or sit it out.
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April 20, 2020, 10:54:15 PM
 #18

Also:
4. Trade only where there's good liquidity.
5. Make sure you have set stop loss at least when you sleep.

In relation to that, trade only on exchanges that have a high security system and can be trusted. It is super easy to fall into the common idea that any exchange will do but the volume as well as the FTP services used for transactions as well as speed are the most important too.
In any case, one that would be difficult to deal with is greed and not to mention keeping aside emotions or 'gut feelings' rather than evidence but we can't help but be aware of these  Shocked





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April 21, 2020, 12:24:59 AM
 #19

  • Execute stop loss in every trade is very significant
  • Do not be over onfident in trading
  • Do not always follow the hype ( sometimes it may be a trap for liquidity)
     
     We all experienced different trading risks but these reminders were useless if we dont take and manage self control.
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April 21, 2020, 02:21:37 AM
 #20

Trade with caution. And we should have to know our limitations and stick to it.
Risks are still there no matter how we tried to be perfect or closest to it but something we can't avoid losses. Thought to be normal though.
That is why before we go trading we shouldn't have to assume anything wrong to happen, instead, we have to create a plan that could save us when the time has come. DECISION making is having a big role in trading and that should we have to build and capture those mistakes so it can be corrected immediately.

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