Why risk management is so important ?

[TheGreatPython]

Could it be because if you do not manage the risk you will end up in bigger trouble than you anticipated in a move that you didn't suspected? You could do a trade or anything that could potentially be riskier than you know and because you didn't do your risk management you end up losing a lot more than you imagined for it. People who make sudden trades that pops up in their heads are the biggest examples of it.

There are tons of people who see a coin going up, they jump the bandwagon but while they are doing it, all those withdraws/deposits trades and so forth takes half an hour or even over an hour and by the time the money is there, the move stops and they end up with nothing in their hands, even lose money when it starts to go down and they didn't sell it before the drop starts.

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[dunfida]

Risk management is very important. An investor cannot become successful unless he or she uses risk management properly. From my own experience, I have not seen the face of profit until I have followed risk management, but since I have been following it, Since then I have been able to calculate the profit and loss of monthly trading and bring out the monthly profit.

It's right. Risk management is critical for trading. Besides the knowledge about the market, you also have to learn how to manage the risk. Sometime you'll need to accept the risk if the chance of creating profit is large enough. The more profits, the more risks that you have to face. In a new-born market such as cryptocurrency market, there are a lot of risks. Therefore, without doing risk management, traders have a great risk of losing their money for nothing.

Risk management is critically needed not only on crypto but in any investment because this would be your weapon to be profitable no matter what kind of investment you are into.You should know on what you gonna do in terms of risk:reward thing because if not then you would just basically doing gambling at all.Some investors do choose to play much safer or less risk and just accept a few amount of profits and some do really choose up to have bigger risk to gain more.Its just a matter of choice and this will vary out also on how knowledgeable you are into this field.

[htsy585]

Trading on the live exchange is actually harder than how written contents usually convey it but you are right about one thing though, taking calculated risk is the key to success in any volatile market because the wave and charts can go against you any moment no matter how pro of a trader you seems to be. It is just unfortunate that most trader don't yield to the warning of trading what you can afford to lose or a spare cash

[Kelvinid]

Trading on the live exchange is actually harder than how written contents usually convey it but you are right about one thing though, taking calculated risk is the key to success in any volatile market because the wave and charts can go against you any moment no matter how pro of a trader you seems to be.

Because crypto trading in real life is somewhat different. It was very hard to manage ourselves when we have a little patient and knowledge in trading and quite to see that some traders are quitting and leave because they don't really understand the situation.

It is just unfortunate that most trader don't yield to the warning of trading what you can afford to lose or a spare cash

And then, it was an unfortunate thing that they couldn't even manage to take the risk and handle the stress they actually live. That even you are an expert and pro traders, you can't simply think that trading we work so easily, yet it was a stressful job especially when the market turns into bearish.

[Review Master]

Of course risk management is the first thing that makes a trader perfect. Without having it, a trader can loss all his fund in treading. So Its impossible being a perfect trader without having this skill. But without risk, it's not possible to become successful in life

Right, we need both skill/knowledge and risk management in order to be a successful trader, also for staying/surviving  in the field of any assets trading whatever it's cryptocurrency or forex or stock tradings. Especially, risk management is the key factor of trading like FA and TA. Frome my experience, I lost some funds in margin trading because of not using the stop-loss tool or risk management at the beginnings. But I fully aware of this and recover my previous losses by using the risk management and also making profit by taking risks.

[KellyJame]

Risk management is really important as it helps cut down losses. It can also help protect a trader's account from losing all of his or her money. The risk occurs when the trader suffers a loss. After all, a trader who has generated substantial profits can lose it all in just one or two bad trades without a proper risk management strategy.

[ironman80]

It is very important to be disciplined,to master self-control,and to avoid being greedy...Risk managment is not easy to master,you have to be patient and wait for the best time to enter a trade

[Mrengage]

I once had a friend who lost over $20,000 back when Crypto money was too much for him to even understand what he was doing. Risk management is the number step one has to make before investing so Much in a business.

[sandos]

I once had a friend who lost over $20,000 back when Crypto money was too much for him to even understand what he was doing. Risk management is the number step one has to make before investing so Much in a business.

Managing risk is not always easy because you must always be careful before any investment. In investing, this step is very important, and even professional investors can lose money when participating. Before investing, you need to have a specific plan and always think many times before buying because if not careful, you will be the next victim of the crypto market.

[metenjean]

Risk management is most important thing in trading because every trader only keep on their mind about how much profit will got and not care about chance to lost with their trading, we must ready with risk management like cut lost when getting assets trading is little chance to get profit and we must take other chance with other coin have bigger chance for profitable.

[ethereumhunter]

I once had a friend who lost over $20,000 back when Crypto money was too much for him to even understand what he was doing. Risk management is the number step one has to make before investing so Much in a business.

If your friend knows what he needs to do before he invests in crypto, I am sure he will make a lot of profit because he uses big money to invest. Risk management will be there, but we can minimize the risk by analyzing before we invest, so we know what step we need to do. Besides that, we need to know the amount of money that we should use to invest so if something wrong happens, we can use the other strategy to prevent another loss.

[xandriel]

Risk management is most important thing in trading because every trader only keep on their mind about how much profit will got and not care about chance to lost with their trading, we must ready with risk management like cut lost when getting assets trading is little chance to get profit and we must take other chance with other coin have bigger chance for profitable.

In trading, I always set a stop loss after buying and certainly will never be greedy when that coin goes up. I have a clear original strategy and will sell when I have made enough profit according to my strategy. Of course, sometimes these coins usually go up higher, but I do not regret, because investment opportunities are always available to me in this market.

[brotherwood12]

why is important for me because it will prevent me from big loss , i just thinking about it again before making some decisions and count how much risk that i put on something

[hassancisse]

Risk management is very important in trading and you need to have discipline to be able to follow the proper risk management, this is what most traders dont have. One of my best attribute as a trader is being disciplined because i never over leverage.

The general rule in trading is never risk more than 1-3% of your trading account which is the best thing.
If i have an 100$ account that means i am just risking 3$ to make about 6$ depending on how many pips i am willing to take from the market

[BuNga_cute]

I agree that risk management is very important, but it is not as easy as one might imagine doing risk management. Logic is needed
in thinking when doing risk management and not everyone likes to think with logic. I after using risk management when trading,
i can get maximum results. Even when using risk management, when the market is bad, my capital can be saved. So risk management
is really important for trading.

[Baoanhbmt]

 If you were the standard trader of you'd create a risk management plan for yourself. Risk management is how we can manage the money that we will use in trading, and how we deal with the risk, so our loss will not be bigger. I admitted that it is difficult, but if we don't try, we will never learn how to prevent the risk. Traders are usually focusing on the money that they may earn and not the money that they may lose and that is why when they all in their money in just one trade, they suffer huge losses that takes time in order for them to recover it.   So no matter how broad your knowledge is without your capital management skills, you'll soon be out of this game. The market fluctuates unpredictably so capital management is very important. We need to measure our steps and ensure that we can mitigate risk as much as possible and take the corrective step in order to gain.

[jostorres]

The important idea given to risk management by the veterans all was because you could lose all of your money very quickly if you start to do stuff that are very risky very quickly. Hence at the end of the day, there is no way you could start right away and go for x100 leverage suddenly, you have to make sure you do your risk management according to your talents. However risk management changes from person to person, trader to trader.

If you are a dentist that puts aside 1000 dollars to trade on bitcoin you are usually more careful, even though what you would lose is still 1000 dollars and not much of a deal globally, its still your money and you take care of it. However when you are a trader for a huge hedge fund that deals with bitcoin, you are usually less careful since you know what you are doing better and if you lose there is more to come.

[Injective]

I believe only the money I withdraw from the exchange is what I win. Then ones in exchange are all my loss.

It is very strict, I know. While, it is the first we need to think before we invest, identify the risks. What if you lose all your coins? Nothing will worse than lose all, right? We can still support our live even we lose all. Then, do analyze, treat, monitor and review the risks.

Risk management is important. We need to know what we can lose before every start.

[wozzek23]

Okay you're right, but saying win percentage doesn't make a successful trade, to me that's wrong lol. What else are we doing this for, if not to make enough win and earn money? Yes in a way you're right, it's good to learn how to manage our loss properly. That's very important.

But, the main purpose of everything still lands at making more win percentage. You're doing that because you don't want your loss percentage to be more than your winning percentage. That's why it's important to know everything there is to know about risk management and preserve our capital. I heard that professional traders are making less number of losing trades compared to winning trades. But, that does not make sense after coming across the example you have mentioned .

[Lanatsa]

I believe only the money I withdraw from the exchange is what I win. Then ones in exchange are all my loss.

It is very strict, I know. While, it is the first we need to think before we invest, identify the risks. What if you lose all your coins? Nothing will worse than lose all, right? We can still support our live even we lose all. Then, do analyze, treat, monitor and review the risks.

Risk management is important. We need to know what we can lose before every start.

Everything should really be done before throwing up some money into various investments that you had considered because if not then you will surely got stressed nor even rage out when you do lose money.

You should accept from the start that theres always a chance on losing on what you had invested thats why its always ideal to calculate on the risk you are tending to give out for a specific return that you are expecting.

This one might vary on each individual though but in overall sense, its just really the same.