Why risk management is so important for Every Trader.

[chanler]

for a trader minimizing losses is the main thing. Therefore, it is necessary to have control in it so that we are not trapped in a state of continuous loss. risk is definitely there especially with this ups and downs crypto market but we must be able to deal with it well and believe that we can do it. risk management is very important so that we can control our trading activities in the future. it's not an easy thing either, but if we can understand our own trading flow well then it will help.

[1714499365]

1714499365

[1714499365]

1714499365

[rahmatullah9305]

Today Market Suddenly dump, so I explain why need risk management is so important for Every Trader.

📌 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.

Expect to lose short term. Plan to win long term.

📌 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 is very easy for traders who are able to control their emotions in trading. Stop loss is impossible for us to handle 100% in trading, some beginner traders who jump into cryptocurrency trading are often unable to control their emotions, this includes me when I first jumped into trading when this dump became frightened and made the wrong decision. so it is necessary to learn how to manage risk and be consistent with the initial target setting.

[Alisha FR]

Today Market Suddenly dump, so I explain why need risk management is so important for Every Trader.

📌 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.

Expect to lose short term. Plan to win long term.

📌 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 is the real proof when it comes to trading. It takes mental stability and being able to control emotions when the market situation is beyond the initial target when trading. So the importance of risk management because the market is so volatile that risk has become a part of trading. So for a trader at least minimizing losses is very important rather than continuously losing his assets.

[palle11]

Not until a trader starts the use of risk management they won't make consistent profit that will help the account to grow. What the risk management does to the account is that it doesn't allow for excessive and unreasonable losses that will drain the account. If we use the system then we have proper control of our losses and quantity it to our profit because in trading we require to make more profit than losses. We need to use risk to reward ratio and that will control the risk we want to take in a particular trade.

[dunfida]

Not until a trader starts the use of risk management they won't make consistent profit that will help the account to grow. What the risk management does to the account is that it doesn't allow for excessive and unreasonable losses that will drain the account. If we use the system then we have proper control of our losses and quantity it to our profit because in trading we require to make more profit than losses. We need to use risk to reward ratio and that will control the risk we want to take in a particular trade.

They wont really learn if they dont experience up things that should a trader/investor should able to experience on.This isnt something that can be acquired without doing anything thats why real experience

is they key for you to make yourself even more better.Of course risk management will really be the main thing for you to handle out situation specially dealing with unpredictable market.

This isnt something that you could just ignore because if you dont progress then you wont really make yourself improved.

[jossiel]

risk is the real proof when it comes to trading. It takes mental stability and being able to control emotions when the market situation is beyond the initial target when trading. So the importance of risk management because the market is so volatile that risk has become a part of trading. So for a trader at least minimizing losses is very important rather than continuously losing his assets.

It is for minimizing the possible losses.

A trader knows how to manage the risk and even calculate it if it's needed. This has become a standard for the traders because they're all for the safety of their trades from huge losses.

[pelumi20]

Risk management is one of the most importance aspects of trading because you can have a good strategy that gives you a decent win rate but if you don't have good money management or risk management your portfolio will not grow. The industry standard is that you should risk 2% off your equity password but I personally do not expose my equity to more than 1% risk. That way it is easier for me to recover from losing Streaks

[Twinkledoe]

Risk management is one of the most importance aspects of trading because you can have a good strategy that gives you a decent win rate but if you don't have good money management or risk management your portfolio will not grow. The industry standard is that you should risk 2% off your equity password but I personally do not expose my equity to more than 1% risk. That way it is easier for me to recover from losing Streaks

And without such knowledge, it is like you are trading blindly without any plan or strategy at hand. Which can eventually wipe out your assets. This is very important for traders so they can also prevent big losses. As much as possible, one goal is to optimize your profits, or at least minimize your losses. If you feel that there's something wrong with your strategy, you can easily check what made it wrong and rectify it as soon as possible.

[Aurorra]

Risk management is very important in trading and investment. Everyone will have a loss when trading, so we must analyze the market and formulate a trading strategy that suits them. Take profit and stop loss in time and carry out risk management. Risk management can help reduce losses, and not all funds will be lost when market prices change.

[ninabobo]

Yes your right ! Most newbies don’t think of how much they could loose , they think so how much profit they can make which in turn makes them to take steps which leads them to having a loosing trade , risk management is key. Since the market market can’t be predicted it’s always better to manage risk so as if the worse happens you’d be on a safe ground buh greed won’t allow most traders know this little fact .

[Bombbi]

For traders, risk management is essential.
Risk management is the key to trading. It can help us manage losses, reduce huge losses caused by operational errors in the trading process, and avoid losses or liquidate all trading funds.

[Luzin]

It is for minimizing the possible losses.

A trader knows how to manage the risk and even calculate it if it's needed. This has become a standard for the traders because they're all for the safety of their trades from huge losses.

You are right, because no matter how good a trader is, he can only guess the direction of the market, he can lose, he can make mistakes. So risk management by using features in trading such as stop loss is absolutely necessary. That is support for the analysis because it is better to lose a little than to lose a lot.

[checkmatesir]

Planning of winning in the long term trading is quite important and I must tell you that risk management is also really important in both type of trading , in long term as well as in short term trading also. But the difference is that risk management in long term trading is must and you should keep an eye on it.

[geegaw]

Yes your right ! Most newbies don’t think of how much they could loose , they think so how much profit they can make which in turn makes them to take steps which leads them to having a loosing trade , risk management is key. Since the market market can’t be predicted it’s always better to manage risk so as if the worse happens you’d be on a safe ground buh greed won’t allow most traders know this little fact .

Of course, the newbies are just full-time employees in real life and their worry is just a delay in getting paid and having a pay cut, there has never been an element of losing most of their salary from their company, hence, they will not have the expertise of an investor, more precisely, their trading theory is an old version and has not yet added new criteria such as skill and risk management. A fact that we should admit is that the number of people who know trading well is still too small, almost only know here with the belief of holding to death without thinking about disaster prevention.

[Zanab247]

It help trader to know when and where to buy and sell to make a good profit. It slow many traders not to get involve in losses in their trading by investing wisely in a particular project. It help to watch the market price very well before buying coins or selling coins in the market.
Is to help the traders to be more comfortable with their investment despite the dumping that is making other traders not to invest. Risk Management help people not to regret with their looses from the past than to be more focus on the present investment.

[SonyZ3+]

It is never possible to do business without risk. If you want to be a successful businessman, you need to know the strategies of the business and move forward efficiently and take risks if necessary. However, if you want to do business without risk, you must start a business with less capital. And you always have to keep in mind that there can be loss along with profit. To survive in the crypto market you need to take risks and keep your mind fully prepared that you can lose your capital at any time. And this problem has created a limitation in cryptocurrency.

[Mkmanik]

Agree with OP.
Risk management is very important for traders. If anyone wants to survive in the trade, He must be known Risk management. Because most of the people cant able to survive in this field. Risk management helps a lot for survival in trading. If anyone wants to learn a trade, I suggest she/he first learn Technical analysis and after that risk management. TA will help you to take a trade and Risk management will help you how much money you will use for long or short. Without proper risk management, A trader will be Rekt very quickly.

[cheezcarls]

Until now, newbies and beginners are prone in making their emotions taking over them if everything goes down the wire. It’s simply because they’re getting engaged into the hype and doesn’t care if they go all-in or not without knowing the risks. It’s currently the best skill that we need to have as crypto traders.

[palle11]

Until now, newbies and beginners are prone in making their emotions taking over them if everything goes down the wire. It’s simply because they’re getting engaged into the hype and doesn’t care if they go all-in or not without knowing the risks. It’s currently the best skill that we need to have as crypto traders.

Our emotion is part of the risk we need to know how to manage because it is important to our phycology of the market and studying and charting out the market properly. For instance if we don't have balance phycology to know that we don't need to force the market to profit from it after we have lost, we can re-enter multiple times and lose. So it is better if we having a sound mind and emotion to take good trading decision. Newbies and beginners are always in a rush when taking up trade. They lack experience to understand the market phycology and percentage of risk to take in a trade.

[Fakhrulenclix]

Yes, how can it be said that the risk management that we do can be effective in trading, seeing the market situation that is currently being dumped, for me there is no need to open sell if it has touched the % we set. It is better to hold it, because the support line will form again in the market and lead to the resistance line. And it is an opportunity to do an open sell.