What can we do to minimise the risk in trading

[thecodebear]

- PROTECT YOURSELF FROM CRASHES:  Use stop losses (though that is something I am only just starting to try out)

- DON'T BE GREEDY:  Take profits early, don't try to get lucky with some huge trade

- DON'T TRY TO BEAT THE MARKET:  Don't worry about beating the market (sometimes you will sometimes you won't) or catching the majority of every pump or every correction. Just ride the waves of volatility, whether that is on a daily basis, weekly basis, swing trading, or whatever.

- NEVER GO ALL IN:  Split your trading stash up into at least several different trades: never put the majority of your money into a single trade

- BE PATIENT:  If the price is going up and your sell order just completed and you get excited about the rising price don't immediately put a bunch of money back into a new trade, and same thing for if the price starts going down don't immediately buy in, more than likely that movement will continue, so buy in gradually.

- CONSTANTLY EVALUATE YOUR SITUATION AND THE MARKET:  Each day (if you are a day trader at least), and after each trade completes, evaluate where the market is and where you think it will go, and compare that to how much of your portfolio is currently in trades and how much is sitting on the sidelines. For example, when I start getting to 85-90% of my trading stash in trades I start getting worried about risk and will look to quickly sell something lower than I had planned as long as it is in profit, so I can reduce that risk. Or if I think the market is looking pretty good and only have my stash is in trades I'll be looking to get into another trade real soon.

- SET ASIDE MONEY FOR MAJOR CORRECTIONS:  Plenty of times when you look at the market over a period of weeks or months the market will retrace by tens of percent. Have at least a little bit of your trading stash set aside to take advantage of serious corrections. Sometimes they only last days, but sometimes they last weeks or months. This along with stop losses can mitigate the risk of substantial corrections.

- REGULARLY WITHDRAW SOME PROFIT:  Compounding is incredibly powerful, but to protect the money you have made you should be taking some profit off the actual table and back into your bank account on a regular basis. This way even if the market forces you to take heavy losses you've taken profits out. The flip side of this is to do this in conjunction with the previous piece of advice - instead of withdrawing some profits back to your bank account regularly, just move them to low buy orders as the money you have set aside for serious corrections and stick to that commitment of keeping that money set aside to buy in low on those corrections. That way you will still occasionally get to compound those profits but you are minimizing risk further during serious corrections and you get to take even more advantage of corrections.

[1715595869]

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[Ridwan Fauzi]

If you are a daily trader, it a must to see the supply and demand for the coin that you be traded.

I mean, you can see some people who put a buy and some people who put a sell, because it is a basic thing before you see the candle, you can see them on the book order.

High amount of money will never give you a high profit even it will make you got a huge lose. You can trade with small amount of money first and see several things that happened when you trade and you have to repeat it in all your trade.

[TitanGEL]

I think we can narrow this down if we can control greed and exploit the benefits. however, when you get a profit, you can immediately sell your assets. it is the best way to avoid the risk of trading. the smaller the profit we take, the less risk we face.

It is about having trailing stop ir target profit in order for us to protect our gain and not let the greed to control ourselves. Greed is the reason why some of our gains are becoming losses because we are not able to protect it. We can minimize the risks if we have a plan where we can protect our capital and of course if we have gains. The risks are high in trading and we should be aware of that, we can handle it very well if we know what we are doing.l where we have efficient and effective plan.

[Casdinyard]

I think we can narrow this down if we can control greed and exploit the benefits. however, when you get a profit, you can immediately sell your assets. it is the best way to avoid the risk of trading. the smaller the profit we take, the less risk we face.

It is about having trailing stop ir target profit in order for us to protect our gain and not let the greed to control ourselves. Greed is the reason why some of our gains are becoming losses because we are not able to protect it. We can minimize the risks if we have a plan where we can protect our capital and of course if we have gains. The risks are high in trading and we should be aware of that, we can handle it very well if we know what we are doing.l where we have efficient and effective plan.

Greed, is indeed what will keep you broke. I admire those exchanges that has a stop loss button setting for their traders, it really feels like they care for every one and knows that the greatest enemy of a trader is not the market but the greed that lies on them. Trading cryptocurrency is risky, as we all know the volatility rate is very high, it could jump from hundred bucks up and down, or thousands of bucks in an hour. Minimizing risk is not that quite easy thing to do, it requires more of discipline and less of greed or none at all.                 

[Omair Amin]

"I think during trading we should minimize the risk by using escrow option and used the specific exchange which have high liquidity that would allow you to minimize the risk and you should get benefits during trading."

[pixie85]

In general OP is giving soime good advice but there's the funny part like not investing in dump coins

The truth is you rarely know that a coin is going to be a "dump coin" until it dumps and it's too late.

[wozzek23]

Dollar cost average is always a thing that is talked about and I feel like it may actually work if you look at the past 5 years. Let's say you want to invest 1200 dollars a year on bitcoin, if you buy it all at once you may buy at the bottom and profit a lot but also you may end up buying at peak and lose a lot as well.

Hence the idea of DCA, that allows you to buy 100 dollars per month instead of 1200 dollars all at once, and this way you are buying on yearly average instead and that means you are not buying at the bottom and profiting the maximum but you are also not going to buy from peak neither, even if you do there is 11 more times you will buy that year so the average will go down. I have not done that myself too much but this strategy sounds like it does minimize the risk.

[XCANA]

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.

This reminds me about  what happened to me some few months ago, I did actually bought some stellar on livecoin exchange and trade the coins for profits which I was happy but a friend told me that, I should have waited for sometimes to get huge profits out of my trade, so, I decided to fall back and bought some stellars but at this time I lost the trade and regretted my actions of selling and looking back for another huge profits. For those who are still active in trading, never listen to any fellow who will suggests to you to retrade your coins which you have already made some substantial profits from.

[LbtalkL]

I guess you have learned all the basics to start trading but I have one advice for you, Is to familiarized each trading platform, they have different styles and GUI. You might get confused, sometimes instead selling on high price you buy at high price that is a common mistake if you are not familiar with the trading platform. Some platform has a demo, try it first before trying the real one. Especially on leverage trading each platform has unique ways so better familiarize it first to avoid committing mistakes.

[Quidat]

I guess you have learned all the basics to start trading but I have one advice for you, Is to familiarized each trading platform, they have different styles and GUI. You might get confused, sometimes instead selling on high price you buy at high price that is a common mistake if you are not familiar with the trading platform. Some platform has a demo, try it first before trying the real one. Especially on leverage trading each platform has unique ways so better familiarize it first to avoid committing mistakes.

Its just normal to familiarize everything specially with the basics since this is the first step for us to take but there are
really some noobs which arent really that sensible and rather going directly through things without proper knowledge or familiarization.
When it comes to risk topic then this one is just the basic part and whats being discussed here is about the risk on handling up
yourself into several factors which do affect your trading activity.Yeah, those points are indeed the true thing but
applying it on ones self is the hardest part.

[rexxarofmoknathal]

I personally think that avoiding margin trading or leveraged trading is the best thing to do if you're overly worried about risk.

A lot of people have some small success on spot trading platforms, then immediately jump to 10x or 100x leverage and get absolutely destroyed.

These platforms are only for the largest and most experienced traders, if you're a beginner, don't even bother trying.

[celot]

I think who smarter some one trade always get lost and keep try to stop risk by cut lost, when you working for trade you can sell after success buy under your price before because to get miss with your lost and keep get profit at the next time, but you must check how the future some coin do you want trade.

[AniviaBtc]

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 .

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.

You should perform technical analysis so well and properly so that you will not have a hard time performing your strategy and plans in trading. Also monitor the market and the factors that can affect it so that you're well-prepared and you can have an advanced vision and perform alternative strategy in trading. Fundamental techniques and skills in trading must be practiced properly and apply it in the actual trading so that you can get a lot of experience and don't be anxious about mistakes, it is normal. In order to become good at trading and minimize the risk, every time you lose a money, you should treat it as a lesson so that you will never do that again. Learning in trading is limitless and you should take every opportunity special.

[pankaj1234]

Trading is very risky for who does not done any research on them. It is a high risk and high gain platform. So you always be aware what you are doing. To minimise the risk you should research on their technical aspects, their overall chart, their news means roadmap and best thing I like to say when ever a share dump to low price, not think too much just enter and wait sometimes for market to recover.you always going to be in profit.
One thing I like to share experience is our best friend.whenever you spend some month in any trade arena you will will gain experience that more important aspect of trading.

[cosmofly]

I feel that psychology has a lot to do with trading results. Although we have profound knowledge about the market, but if we are greedy in trading, we will get a lot of bad results. I've heard the story of my brother, he's a financial expert and has worked for over 12 years. but in a moment of not being alert, he is greedy and breaks his trading rules. then the market fluctuated and lost $ 640k, the money he built in 3 years but only after 3 hours. so stay awake when trading.

[hulla]

You should perform technical analysis so well and properly so that you will not have a hard time performing your strategy and plans in trading. Also monitor the market and the factors that can affect it so that you're well-prepared and you can have an advanced vision and perform alternative strategy in trading. Fundamental techniques and skills in trading must be practiced properly and apply it in the actual trading so that you can get a lot of experience and don't be anxious about mistakes, it is normal. In order to become good at trading and minimize the risk, every time you lose a money, you should treat it as a lesson so that you will never do that again. Learning in trading is limitless and you should take every opportunity special.

Always easier said than done my friend. Just look at all the technical analysis every day in forum and on Twitter. It takes hard work and a lot of learning and still, if the trades go against you, you lose money.

Patience is one thing but with real money at stake it can be hard to keep a level head.

Discipline. Trade in a group and have everyone pressure you into following stop loss.

I guess he dont understand that both fundamental and technical analysis are just a forecasting which cant be totally rely on or provide the perfect result always. Besides, even the senior market analysit (Mati Greenspan etc) dont totally put their confidence in every predictio they did.

[thesmallgod]

also avoid telegram groups that will claim to be giving you signal because if you do not, you probably going to end up being broke. Know when to stop and do not always want to gamble by investing in crypto that are pump and dump. It is best to look for an exchange platform with huge traders for liquidity and always make sure you set stop loss when you are sleeping or not trading

[Shallow]

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.

Although no one is perfect but at least we can make efforts to be better. In the case of greed, it is a very huge issue and once a trader overcomes it, he would have learnt one of the best things (attributes) about trading. You really did well with this post and it is closely to what I was taught and have been practising; to add to your list, not only dump coins should be avoided, but also pump and dump coins. Another is, a trader should be careful of these signal channels and groups. Lastly and most especially, the knowledge of trading should be acquired before venturing into trading to avoid costly mistakes.

[ScamViruS]

Your all point are good. You must first prepare yourself to trade. When you are ready, you will have the ability to follow all the rules. If you don't have the ability to read the market and control emotions, there will be losses waiting for you. New traders often lose their funds when they come to trade. Because they do not have proper trading knowledge.

It is not easy to predict a bearish and bullish market. Because there are many reasons behind it. Many times a news comes and takes the market to the other side. To minimize the risk, stoploss must be used to save funds in case of any sudden dump.