Risk Management in trading cryptocurrencies ...??

[WaqasBlaze]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

[mk4]

When bitcoin goes up, alts mostly go up higher.
When bitcoin goes down, alts almost always dumps harder.

The 3-5% capital allocation is recommended simply just so that you can have a chance to make back your money if you ever lose a few trades. In contrast to going all in on one trader, where if you lose that  trade you're pretty much done.

As for recommendations, look around the forum mate. There are so much trading advice threads posted that I pretty much see redundant threads every few days.

[michellee]

There is no exact percentage that will be the best for everyone because that will depend on how much money people use to trade or invest and how they can manage the risk. What you read on Twitter could be the basic lesson to manage the risk, but you will know after you practice with your own money. Using 3%-5% will be recommended, but if you have high trade skills and you can deal with the risk, you can use more capital to trade because you know that you can analyze better the market situations. We need to adjust our money to be used in trading and not greedy to chase profit.

[cryptoaddictchie]

When bitcoin goes up, alts mostly go up higher.
When bitcoin goes down, alts almost always dumps harder.

This is commonly happened but some alts sometime have exception with this. I've noticed that when bitcoin is down there are some altcoin retain their position and these projects are highly strong in support. Example of this is egld or elrond project. When btc dumped they still have their price at green mode.

Anyway that's only for few ones but you are right majority are being dragged down.

[mk4]

When bitcoin goes up, alts mostly go up higher.
When bitcoin goes down, alts almost always dumps harder.

This is commonly happened but some alts sometime have exception with this. I've noticed that when bitcoin is down there are some altcoin retain their position and these projects are highly strong in support. Example of this is egld or elrond project. When btc dumped they still have their price at green mode.

Anyway that's only for few ones but you are right majority are being dragged down.

Totally. And that's why I chosen my words carefully, using the phrases "mostly" and "almost always" because I totally get that what I said doesn't 100% apply every single time. 😁

[WaqasBlaze]

There is no exact percentage that will be the best for everyone because that will depend on how much money people use to trade or invest and how they can manage the risk. What you read on Twitter could be the basic lesson to manage the risk, but you will know after you practice with your own money. Using 3%-5% will be recommended, but if you have high trade skills and you can deal with the risk, you can use more capital to trade because you know that you can analyze better the market situations. We need to adjust our money to be used in trading and not greedy to chase profit.

Sir if i have 500$ in trading account. HOW much should i took risk in every single trade ?😊

[WaqasBlaze]

When bitcoin goes up, alts mostly go up higher.
When bitcoin goes down, alts almost always dumps harder.

The 3-5% capital allocation is recommended simply just so that you can have a chance to make back your money if you ever lose a few trades. In contrast to going all in on one trader, where if you lose that  trade you're pretty much done.

As for recommendations, look around the forum mate. There are so much trading advice threads posted that I pretty much see redundant threads every few days.

Sir how many trades should i take at a time...😊

[mk4]

Sir if i have 500$ in trading account. HOW much should i took risk in every single trade ?😊

Like what you already said in your main post, 3-5% allocation per trade should be a good starting point especially when you're a beginner. Heck, even if you're already a trading expert, 3-5% is still mostly the better choice because going greedy and going as high as 10%(or higher) per trade can be a recipe for disaster.

Sir how many trades should i take at a time...😊

There is no standard number of trades you should take at a time. What's important is that you can actually monitor your trades, and the number will completely depend from person to person. Probably start with a maximum of 3?

[WaqasBlaze]

Sir if i have 500$ in trading account. HOW much should i took risk in every single trade ?😊

Like what you already said in your main post, 3-5% allocation per trade should be a good starting point especially when you're a beginner. Heck, even if you're already a trading expert, 3-5% is still mostly the better choice because going greedy and going as high as 10%(or higher) per trade can be a recipe for disaster.

Sir how many trades should i take at a time...😊

There is no standard number of trades you should take at a time. What's important is that you can actually monitor your trades, and the number will completely depend from person to person. Probably start with a maximum of 3?

Thanks Sir😊♥️

[boyptc]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

3%-5% of loss, then you should trigger stop loss and let that loss get out before your loss go more than that percentage.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

My suggestion is to invest to bitcoin and if you're liking to invest in alts, invest most in bitcoin and just around 20%-30% of your money in alts.

[WaqasBlaze]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

3%-5% of loss, then you should trigger stop loss and let that loss get out before your loss go more than that percentage.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

My suggestion is to invest to bitcoin and if you're liking to invest in alts, invest most in bitcoin and just around 20%-30% of your money in alts.

Thank you for this suggestion sir i will try...😊♥️

[ChrisPop]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

I'd say that as a trader you don't want to take more than 1-2% risk per trade if you are trading on the short term.

As far as I have noticed most of the time altcoins go down against BTC when BTC is pumping against USD. That is due to traders wanting to profit from the BTC move and of course FOMO.
When BTC dumps usually people lose trust in altcoins as well. At least lately altcoins seem to rise when Bitcoin is consolidating.

[boyptc]

Thank you for this suggestion sir i will try...😊♥️

You're welcome.

Try it and just go with the experience and if you ever are losing, treat that as a lesson and don't give up. You're just starting out and there's more to go.

Good luck with your journey.

[justdimin]

Just because bitcoin pumps doesn't mean that alts will dump, that is not the case most of the time when you look at the fiat prices of the coins, you have to realize that when you are trading. Just because bitcoin went up and some altcoin went down in btc price doesn't mean that it will go down in fiat, it could go up in fiat and that is what we are looking for right now.

I personally think that we are in a situation where we are going to end up with altcoins and bitcoin both will go up soon, so you could invest into alts as well. That "alt season" people are talking about is already here, we literally had all time high price on ethereum for example, and people are still saying bitcoin pumps and alts dump, how the hell do you manage to think btc broke 1.5x over the previous ath price and ethereum broke over ath price and they do not act together.

[carlfebz2]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

When it comes to risk management or how much you should spend % of your total capital into your trades then its up to someones decision and this will really vary from person to person
because we do have different capacities when it comes to financial aspect and the level of risk management.

It doesnt matter if you do make use 5% or 10% or even more as long you do saw some chances for you to take advantage then its up to you.Its your money and its your right
on whatever position you would make.

Just make sure that you are aware on the risk on putting up much bigger but if you are a type of trader that doesnt really like to gain some peanuts then
you can always opt on making your trading position bigger.

[seleme]

The huge volatility increases the risk of REKT and for protecting the trades we have to use the best suitable money management depending on the trading strategy. The perfect money management is all about cutting losses and let winning trades run while adjusting the trade lot size. The minimum volatility is the best environment for learning the trading but the medium volatility can cause big fluctuations if the money management is ignored by the trader.

[Issa56]

As a trader one of the first thing you have to learn is risk management how you manage your lost in the manner that you won't lose all you funds. Firstly when trading in Cryptocurrency or investing in Cryptocurrency always make sure you invest or trade with 20%-30% of your capital. Secondly somepeople might see stop lose as a useless idea but I will advise you to always use stop lose because is better for you to lose 5%-10% of your funds than to lose 60%-70% of your funds so always use stop lose. Thirdly always know when to exit the market always know when you will always take your profit and leave the market you don't have to be greedy.

[CryptopreneurBrainboss]

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Don't rely on informations you get from social media, most especially crypto-twitter as most users you see on that platforms are pretenders only wishing they have they level of success in trading they post about. We're currently in the altcoins season so the scenario that involves alt market dumping isn't as it was few months back when the pumping and dumping of bitcoin resulted to altcoins bleeding out most especially DeFi related projects.

Now bitcoins pumps influence the reaction of the alts as they gain value. Your risk management do have a lot to do with your trading capital. If you have very low capital then you don't expect to use just 3% and come out very profitable. In the trading game, the more capital you invest produce a profitable output so maybe increasing your own to 10% might just be ok provided you would be comfortable risking that amount.

[el kaka22]

I would say risking as much as 10% could be the max, because 3% is very little, 5% is not bad, and 10% is the max, anything between 5% and 10% would be fine. I haven't really had any trouble with the 10% I do, even if I end up losing some I end up 1-2% of my total and that is something I can recover most of the time.

I am not a big time trader so do not take this advice like it is the rule book, it is not and it is just me and I usually invest and not trade, but sometimes I get bored and I want to trade a bit and I have fun with it, and at that point I do just 10% and when I earn I earn like 2-5% at most and when I lose I lose 2-3% at most which are totally fine levels for me, I could handle losing that much without really hurting my investment. If you end up dealing with 3% that would be so tiny that any profit you make would not be worth it in the end.

[kram31]

I read from a twitter thread and from some blog that we should took trade by risking 3-5 % of our capital per trade. So you can protect your ccapital.

But in Cryptocurrency Market i realized that when btc pump or dump 95% alts gona dump, So i can maintain this Risk mananegemnt to protect my capital.

Please any suggestions...😊

Thank You So Much...🙂♥️

In real fiat currency trading there is a high risk in it, while in cryptocurrency is not due to most of the time altcoins goes up only when
Bitcoin price value is decreasing it in the market. This happened here several years now and even up to now it is still happening in the market.
But whether it is pumping or dumping they are both good opportunity to me in my own perceptions.