Why risk management is so important ?

[Kasabus]

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.

They say traders should know how to handle the risk they put in trading but i believe it's different already when you are in the real field of trading. You still need to control the risk but traders are more into making profits especially if we see good opportunities around. So we stick with our own plans and do the risks whatever it takes.

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[WSDN]

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.

I always create a suitable plan to reduce the risk of choosing to invest in this market, but sometimes those plans are often not the same as my initial thought. The crypto market is very volatile, and even a small mistake can cost you everything, so I am always very careful when buying or selling. Of course, I always recommend three ways to manage risk for myself and always reserve more ways to prevent when the market suddenly collapses.

[Tahsin Kabir Kollol]

Risk management is an essential part of trading. Without considering risk management, It is very difficult to earn a profit. If you do not learn about risk management, then you will lose your asset. No one can trade accurately and every trade will not go for profit. So when anyone opens a trade they should calculate the risk and take proper steps to reduce loss. An investor can not become successful without he invests his assets under considering risk management. So everyone should learn some basics about risk management.

[bocyaj]

Risk management is an essential part of trading. Without considering risk management, It is very difficult to earn a profit. If you do not learn about risk management, then you will lose your asset. No one can trade accurately and every trade will not go for profit. So when anyone opens a trade they should calculate the risk and take proper steps to reduce loss. An investor can not become successful without he invests his assets under considering risk management. So everyone should learn some basics about risk management.

All the money making one will have some risk with itself.Trading is also a one among them,you need to make some risk to earn more money from it.Patience is also a needed with a risk making,this two will get huge and unbelievable profit for sure.If you inverse money for long term ,it will away you from risk.

[Triffin]

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

In every aspect of the business, there is risk involved in it, even though we lost money in trading, but based on the experience we have we should recover those funds. Experiences will help us to find a way how to overcome previous looses, in trading it is impossible to make profits, so based on the situation we should apply our ethics in trading.

Risk is there in our life forever we will have to know how to handle it. In trading you can lose or win as nothing is certain but I saw so many trades who are successful now a day. at beginning you can reduce your risk by spending small amount of money gradually increase to become a supportive trader. My experience in trading was not good at start but now I know allot of things which gonna make me have good future in trading.

[Zemomtum]

Risk management is very important for anyone to make a consistent reliable income in crypto space. Someone needs to calculate the risk before venturing into it and use all necessary tools like stop-loss to prevent a sudden crash

[Macy Jones]

Let's dive in n take a look Why risk management is so important ?


If you enter a $100 trade and lose 15%, you’re down to $85.

If you make 15% profit on your next trade, now you have $97.75

It's harder to recover losses than to preserve funds. Don't think how much you can make on a trade. Think of how much you can lose on a trade. Risk-Reward ratio is key.

Also win % does not make a successful trader, but strategy and risk management do.

For example:

One trader has a 60% win rate but his portfolio is down 6% using a 2/1 risk-reward.

Another trader has a 30% win rate but his portfolio is up 12% using a 1/5 risk-reward.


So, it’s necessary to have very strict rules on risk management that help you to always preserve the capital and not to take crazy risks.

Risk management 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. If it can be managed it, the trader can open him or herself up to making money in the market

[Btc_1856]

Risk management is very important for anyone to make a consistent reliable income in crypto space. Someone needs to calculate the risk before venturing into it and use all necessary tools like stop-loss to prevent a sudden crash

Agree, in the same way, fund management is one of the factors we need to consider in order to control risk management. Based on the fund management, we might control the looses by holding safe fund, by place stop-loss, etc. Trading itself, we should manage all these categories, otherwise, we will end in up in looses.

[DoublerHunter]

Risk management is an essential part of trading. Without considering risk management, It is very difficult to earn a profit. If you do not learn about risk management, then you will lose your asset. No one can trade accurately and every trade will not go for profit. So when anyone opens a trade they should calculate the risk and take proper steps to reduce loss. An investor can not become successful without he invests his assets under considering risk management. So everyone should learn some basics about risk management.

^ All in form of business will have this risk management, this is very important to all who invest and putting money into the business. So, in order to execute stop losses activity, this risk managing tactic is very useful though. Pro traders said that do not risk more than you can afford to lose, you should spare your daily need and do not risk more than 15% of your monthly income. Moreover, this risk management will give clarity on the mind not to be the focus on trading, as they said. Do not put all your eggs in one basket. Nevertheless, there are three components of risk, the position sizing, reward ratio, and the  Stop-Loss and Take Profit.

[hahay]

Risk management is very important for anyone to make a consistent reliable income in crypto space. Someone needs to calculate the risk before venturing into it and use all necessary tools like stop-loss to prevent a sudden crash

Agree, in the same way, fund management is one of the factors we need to consider in order to control risk management. Based on the fund management, we might control the looses by holding safe fund, by place stop-loss, etc. Trading itself, we should manage all these categories, otherwise, we will end in up in looses.

Yes, basically risk management and other things are important things to do or realize right from the start, because if you don't have a plan or in this case related to risk management then at least you don't have a solution when you have any difficulty in its implementation and if so, at Basically you just want to pursue profit without knowing the right way and time to do it.

[beerlover]

It is not that people do not know how to do risk management because there is tons of places that teaches you how to do it these days, but more about how people are not really caring about it when they get super hyped and suddenly make a trade that they didn't intended on doing and suddenly they did it. That is how some people trade, they see something, they get excited, they think it is AMAZIIIING and suddenly they end up buying it, mostly during pumps these things come out because people see something going up and they want to be part of it as well.

There is no risk management for a person who is so caught up in the moment that he literally decides to buy right there on the spot something that he barely has researched before and just saw it increasing and jumped in the pump.

[Mahanton]

Risk management is an essential part of trading. Without considering risk management, It is very difficult to earn a profit. If you do not learn about risk management, then you will lose your asset. No one can trade accurately and every trade will not go for profit. So when anyone opens a trade they should calculate the risk and take proper steps to reduce loss. An investor can not become successful without he invests his assets under considering risk management. So everyone should learn some basics about risk management.

^ All in form of business will have this risk management, this is very important to all who invest and putting money into the business. So, in order to execute stop losses activity, this risk managing tactic is very useful though. Pro traders said that do not risk more than you can afford to lose, you should spare your daily need and do not risk more than 15% of your monthly income. Moreover, this risk management will give clarity on the mind not to be the focus on trading, as they said. Do not put all your eggs in one basket. Nevertheless, there are three components of risk, the position sizing, reward ratio, and the  Stop-Loss and Take Profit.

All of those things that you had mentioned is just part of risk management where it do enclosed about risk:reward etc.. You would surely aware in all of this if you do consider to be serious into your investment where you do make up some research on how you would deal up with your investment and making it progressive via means on reducing the risk.It depends on how you do handle out everything from small to biggest detail.
This doesnt only apply on trading but in all of investment means.It is important because if you dont take this one seriously then it will surely give an impact on investment that you've into.

[The cure]

Risk management is very important asset to us traders. Because you can't earn your profit if you don't try and you're afraid to loose. Always remember that risk only what you can afford to loose,. We must need to learn how to handle your emotions dont be so excited much when trading, think first before letting your asset.

[Synaesthesia]

Risk management is very important asset to us traders. Because you can't earn your profit if you don't try and you're afraid to loose. Always remember that risk only what you can afford to loose,. We must need to learn how to handle your emotions dont be so excited much when trading, think first before letting your asset.

I always think three times before deciding to invest, and this has helped me greatly reduce the risk of buying. In fact, any investment can put you at risk, and this is inevitable. However, if you have the right strategy and investment, you will get out of this situation because the crypto market is always volatile, and you need to change every day to become better.