Why risk management is so important for Every Trader.

[DoublerHunter]

Cryotp Trading is not a Hassle free business, this is very risky business for new people, and nobody can make good amount from crypto currency without any Risk. On the First time i invest a little amount on a Coin now i already make 10x from my investment.               

That is right. Cryptocurrency is very volatile which is why this is a very risky investment. Risk Management is the key. In short-term trading, Please be mindful in putting stop loss to avoid getting wrecked. This practice was not followed by many, mostly newbies. Cut loss if necessary when things didn’t go as predicted, then find a good entry.

^ The only reason why newbies or beginners are being trapped becoming traders who FOMO, impulsive trading, and selling loss is because of the people who consider trading as gambling, and they are very much influential most of the time and they can influence the news that trading works that way. If you are gonna browse, you see successful traders wanna be with the pictures of their trading platform on their old laptop, looking fancy and professional. But in reality, they don’t learn from others. They are very much egoistic and just wanted to look cool and smart and the cycle keeps on rolling.

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[samcrypto]

Cryotp Trading is not a Hassle free business, this is very risky business for new people, and nobody can make good amount from crypto currency without any Risk. On the First time i invest a little amount on a Coin now i already make 10x from my investment.               

That is right. Cryptocurrency is very volatile which is why this is a very risky investment. Risk Management is the key. In short-term trading, Please be mindful in putting stop loss to avoid getting wrecked. This practice was not followed by many, mostly newbies. Cut loss if necessary when things didn’t go as predicted, then find a good entry.

^ The only reason why newbies or beginners are being trapped becoming traders who FOMO, impulsive trading, and selling loss is because of the people who consider trading as gambling, and they are very much influential most of the time and they can influence the news that trading works that way. If you are gonna browse, you see successful traders wanna be with the pictures of their trading platform on their old laptop, looking fancy and professional. But in reality, they don’t learn from others. They are very much egoistic and just wanted to look cool and smart and the cycle keeps on rolling.

Social media is their only basis and that why newbies are being trapped on top because they didn't analyze the market and they have no risk management at all, they are just keep taking risk without any assessment of the possible outcome. Crypto trading is very risky, we must have the proper knowledge about trading, always have a target price and cut loss price so by this you can manage the risk that you can take, and you can get out of the market before it dump again. Newbies are the common victim of this, they are losing money at an instant.

[Dilerium90]

After 4 years of trading in the cryptocurrency market, I can definitely say that without competent risk management, you will not chew in the long term. In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

[FanEagle]

In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

You mean if we are good at risk management then we can sleep peacefully? Or else, we always need to think about market fluctuations? Yes, you are right.

Risk management is something that will ensure that we will not be losing all our capital even under occurrence of sudden market volatility. It will be possible when we are not greedy and when we are ready to accept losses rather than giving our emotions more priority. Traders must always work on effective risk management according to their trading habits; if they are not good at risk management then it is highly recommended to become investors rather than being non-profitable traders.

[Kong Hey Pakboy]

After 4 years of trading in the cryptocurrency market, I can definitely say that without competent risk management, you will not chew in the long term. In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

I am pretty sure that the 1st year is going to be the crucial part because that is where you develop your risk management, also congratulations to you for reaching the point in trading where you can rest easy even though you are trading.

[Rehan Zakir]

Risk management is a very important thing. Because if you did not manage your risk , it means that your account is in risk. A professional trader must manage their risk with trading. A trader have to place a stop-loss when he takes a trade.

[Kelvinid]

In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

You mean if we are good at risk management then we can sleep peacefully? Or else, we always need to think about market fluctuations? Yes, you are right.

Risk management is something that will ensure that we will not be losing all our capital even under occurrence of sudden market volatility. It will be possible when we are not greedy and when we are ready to accept losses rather than giving our emotions more priority. Traders must always work on effective risk management according to their trading habits; if they are not good at risk management then it is highly recommended to become investors rather than being non-profitable traders.

It couldn't just be done at once or two but make this a habit and continue doing this until the day we stop trading.

Risk management can be more appreciative when we are in hard times and we think deeply to find the solution for our losses and mishandled funds. We can see its vital role in our trading life as we are battling to win our emotions. If to find that we are not good at this, I'm not sure but possibly we are very near to losing ends. Yeah, we probably have a miserable life in trading.

[ultrloa]

After 4 years of trading in the cryptocurrency market, I can definitely say that without competent risk management, you will not chew in the long term. In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

I am pretty sure that the 1st year is going to be the crucial part because that is where you develop your risk management, also congratulations to you for reaching the point in trading where you can rest easy even though you are trading.

First year is totally a huge mess to those traders who's starting up since the market is full of fud so for sure many traders struggle to handle their emotions in terms doing a good trade on certain unknown scenario. But in next year if you really make trading as a serious business and you keep learning everyday all is now easy in terms reading the chat and doing your own analysis on what will happen to the market in next 24 hours.

[decodx]

In general, I came to the conclusion, that your risk management is built correctly, when you can sleep peacefully at night and not think about deals and positions))

You mean if we are good at risk management then we can sleep peacefully? Or else, we always need to think about market fluctuations? Yes, you are right.

Risk management is something that will ensure that we will not be losing all our capital even under occurrence of sudden market volatility. It will be possible when we are not greedy and when we are ready to accept losses rather than giving our emotions more priority. Traders must always work on effective risk management according to their trading habits; if they are not good at risk management then it is highly recommended to become investors rather than being non-profitable traders.

It couldn't just be done at once or two but make this a habit and continue doing this until the day we stop trading.

Risk management can be more appreciative when we are in hard times and we think deeply to find the solution for our losses and mishandled funds. We can see its vital role in our trading life as we are battling to win our emotions. If to find that we are not good at this, I'm not sure but possibly we are very near to losing ends. Yeah, we probably have a miserable life in trading.

Yeah. I couldn't agree more.
Any long-term investor in crypto should ensure that he retains the exposure at the most acceptable risk. The truth is that while risks are considered to be higher on the equity side, they are kept lower when you have a diversified portfolio. If the risk was high and the investor had less investments, he would have been fully exposed to market fluctuations.

Every sector is prone to its own set of risks. If one does not pay due attention to the risks that a particular sector is exposed to, the investor is risking his entire investment.

[tygeade]

First year is totally a huge mess to those traders who's starting up since the market is full of fud so for sure many traders struggle to handle their emotions in terms doing a good trade on certain unknown scenario. But in next year if you really make trading as a serious business and you keep learning everyday all is now easy in terms reading the chat and doing your own analysis on what will happen to the market in next 24 hours.

That is the reason, it is always recommended when you are not properly equipped with sufficient experiences not to go for high risk trades regardless of it will be your first year or second year of trading. Moreover your first six months of trading should be with demo money alone because, real trading environment but zero risk way will help you to learn all the tactics of crypto trading.

Along with risk management, a trader must learn tricks about avoiding emotional failure and effective money managements. Trading requires a lot of tactics and when a trader is failing at least either one of them will result in unexpected results.

[molsewid]

That is the reason, it is always recommended when you are not properly equipped with sufficient experiences not to go for high risk trades regardless of it will be your first year or second year of trading. Moreover your first six months of trading should be with demo money alone because, real trading environment but zero risk way will help you to learn all the tactics of crypto trading.

Along with risk management, a trader must learn tricks about avoiding emotional failure and effective money managements. Trading requires a lot of tactics and when a trader is failing at least either one of them will result in unexpected results.

Being a trader we've all came from scratch, we all came from a newbie trader but what we have doing while we are yet a beginner, we are observing the market flow, we are being curious the following steps of how to achieve a succesful trading, you are controlling yourself to engage so much emotion in trader and of course the most important thing was to have a self definition of risk management. Doing trading has always a risk, but as long as you know in yourself that you haven't equipped with good background about trading realization then its a must to not try a high risk of trading.

[beerlover]

Any long-term investor in crypto should ensure that he retains the exposure at the most acceptable risk. The truth is that while risks are considered to be higher on the equity side, they are kept lower when you have a diversified portfolio. If the risk was high and the investor had less investments, he would have been fully exposed to market fluctuations.

Every sector is prone to its own set of risks. If one does not pay due attention to the risks that a particular sector is exposed to, the investor is risking his entire investment.

I can't agree more. Everyone probably "knows" what they should do, but the reality is that even if you have the information for it, you may not end up doing it because of emotions, that is the biggest problem. I have seen way too many people make trades based on their emotions for the past few months.

Weirdly and to be fair annoyingly they have made a lot of money, we are in a huge bull run right now (well not now but for the past few months) and I have seen people yolo their hot or btt or whatever coins on 100x leverage with all-in style and get millions of dollars from few thousand dollars. That's weird, I really did not expect anything like that to happen, many newbies became very rich thanks to this period by doing things we advised not to do but I guess market was so good that even people who didn't know how to properly trade ended up with money.

[taufik123]

I can't agree more. Everyone probably "knows" what they should do, but the reality is that even if you have the information for it, you may not end up doing it because of emotions, that is the biggest problem. I have seen way too many people make trades based on their emotions for the past few months.
-snip-

Trading with volatile emotions can lead to fatal problems. Losses will continue to loom over if emotions cannot be controlled. novice and professional traders alike have emotions. some of them are able to control their emotions because of the experience that has been quite a lot, but some people are still unable to control their emotions.

risk management, capital management will fall apart if emotions cannot be controlled.

[$crypto$]

I can't agree more. Everyone probably "knows" what they should do, but the reality is that even if you have the information for it, you may not end up doing it because of emotions, that is the biggest problem. I have seen way too many people make trades based on their emotions for the past few months.
-snip-

Trading with volatile emotions can lead to fatal problems. Losses will continue to loom over if emotions cannot be controlled. novice and professional traders alike have emotions. some of them are able to control their emotions because of the experience that has been quite a lot, but some people are still unable to control their emotions.

risk management, capital management will fall apart if emotions cannot be controlled.

With emotions that are controlled, no matter how skillful it will be in trading and in the management that it manages, and there is a lot of evidence that we have seen examples of ourselves who have felt the same way when emotions are overflowing, there trading will be destroyed, I not advising anyone when emotions are unstable it is better to calm the mind than to impose only on his greed.

Beginners especially don't ever see anything that we see only around us, keep in a position where we can control in any case that's where I think it would be better than just the passions that are controlled.

[Hamphser]

I can't agree more. Everyone probably "knows" what they should do, but the reality is that even if you have the information for it, you may not end up doing it because of emotions, that is the biggest problem. I have seen way too many people make trades based on their emotions for the past few months.
-snip-

Trading with volatile emotions can lead to fatal problems. Losses will continue to loom over if emotions cannot be controlled. novice and professional traders alike have emotions. some of them are able to control their emotions because of the experience that has been quite a lot, but some people are still unable to control their emotions.

risk management, capital management will fall apart if emotions cannot be controlled.

With emotions that are controlled, no matter how skillful it will be in trading and in the management that it manages, and there is a lot of evidence that we have seen examples of ourselves who have felt the same way when emotions are overflowing, there trading will be destroyed, I not advising anyone when emotions are unstable it is better to calm the mind than to impose only on his greed.

Beginners especially don't ever see anything that we see only around us, keep in a position where we can control in any case that's where I think it would be better than just the passions that are controlled.

You must really be in controlled in everything if you dont like for things to messed up and of course risk management would be the most common things that you should need to control on because this isnt

something that to be neglected on because once you do forgot this thing up then you would really be hardly able to make out profits because you arent aware on how to deal up with the risk involved.

Emotion is one of the most common factor that will surely affect out every trades you do made and that would really be needing some sort of proper risk management handling.

[abel1337]

I can't agree more. Everyone probably "knows" what they should do, but the reality is that even if you have the information for it, you may not end up doing it because of emotions, that is the biggest problem. I have seen way too many people make trades based on their emotions for the past few months.
-snip-

Trading with volatile emotions can lead to fatal problems. Losses will continue to loom over if emotions cannot be controlled. novice and professional traders alike have emotions. some of them are able to control their emotions because of the experience that has been quite a lot, but some people are still unable to control their emotions.

risk management, capital management will fall apart if emotions cannot be controlled.

Stable Emotion is one of the factors of a good trader. Management skills are also a factor and if you have those factors in you, Your trading winning rate would be practically higher than anyone lacking it. Just not having one can greatly affect your chance of winning a trade.

Risk management is one of the important things that the trader should do as a habit, Doing risk management needs good control of emotion, especially in critical times like having a losing streak. Risk management could help you recover the losses but when emotion got messed up, The process that you executed will do nothing.

[Imran232]

Wow thats an interesting topic. Also some motivational point for newbie. Most of the time lots of Newbie comes into trading platform by seeing sone expert traders profit proof. They just thought if i comes into trading then i can make daily 30-60% or more profit. No matter if i losse its a part others day if i generate again profit. Then i can recover what if the biggest misunderstand for traders. Remember why they called expert traders because they are that much able to recover their lose they know how to recover and how nuch time should i spend to recover. What we don't know we just start panik and loose everything. So i think trade management is also important.

[Mamun74]

I think, Risk management is they key to success. A trader must learn risk management how to trade.So,Risk management needs to control emotion. And you also need to know higher experience to trading then you can try it.

[Desmong]

 The reason why many people do lose their hard earn money is because of risk management when it's not used properly. Newbies are mostly decieved by high reward ratio without looking at the amount of risk they're taking. The power of risk management had really been helpful to my trading lifestyle.

[teosanru]

I have a very good picture that clearly depicts what you mean here it is:



This signifies how crucial it is to save your capital. Trader must always choose a lost opportunity over lost capital because growing back capital is certainly impossible because it not only breaks your finance but also breaks you emotionally. You get self doubts and start to get tons of second thought about trading which eventually hurt your trading even more.