Why risk management is so important for Every Trader.

[Smitty Werben Man Jensen]

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.

In trading indeed we must have skills because it is important to support in trading,
In addition to skills, knowledge is equally important,
Trading in crypto is very risky, therefore it takes a lot of things for sure

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[Farma]

That's right. The issues you mentioned are very important. We usually think of making a profit through trading but we do not focus on risky management. As a result, the loss in our portfolio is huge. If we can keep this risk management in proper order then our overall profit will be higher then getting trading profit. Once a trade is lost, it takes a long time to recover, so risk management is much important.

well, the OP has a brief, but insightful explanation. however, strategic management in trading is important. sometimes, people only see the percentage, but don't see the actual value of the asset. Because of this, the risk-reward ratio needs to be considered.
Personally, I do a strategy that emphasizes minimal risk. like logging in on $100 total assets, and when the total assets drop to $85, I'll pause and plan back, then re-enter with $100 when the time comes. however, for an increase in total assets, I will hold that until I am satisfied with the result.

[Woodie]

Well said OP and examples are well elaborated !

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.

Something that goes hand in hand with risk management are emotions. One way of managing emotions is using risk management which will always help you stick to your trading plan without interference and protect your capital from being affected from more than you are ready to lose. Not forgetting risk management helps in managing how much you can use per trade if you aren't a high risk taker.

[Alisha-k]

The trend on risk is becoming too much and maybe scaring newbies the more, don't get me wrong, am not saying it isn't necessary for them to be forewarned about what they're going into, but s constant reminder about the negative may drive them into making the mistake we're pushing them away from...

I think we should also come up with positive trends that'll encourage them to want to make greater achievements like many of  us may have....
Selah!

[ItsCrafty]

As the losses are common in trading and the top traders now a days due to the market situation making losses in that coins which they had expected to get it and go into the ATH, but they are making losses, so risk management should be always taken care of and will look into it as I had told every trader that they need to work with constant patience in trading.

[nurilham]

The risk that we can get in trading is something that definitely happens. therefore we must be able to control it by means of risk management like this to minimize the existing risks. every trader certainly has a choice to succeed or fail and it all depends on how we manage our own assets. With risk management for a trader, it is hoped that they will be more careful and also aware of the ups and downs of the crypto market so they don't get a loss. anything will be done by every trader to be able to do the best in trading.

[Hobo66]

Risk management is absolutely vital thing to be likely to succeed in trading. Actually to get rid of losses of  money while trading, people often uses different risk management. In every line of work there is always present some sort of risk. If a person does not have the ability to cope with these risk then he should first start understanding related to risk management.

[Reatim]

The trend on risk is becoming too much and maybe scaring newbies the more, don't get me wrong, am not saying it isn't necessary for them to be forewarned about what they're going into, but s constant reminder about the negative may drive them into making the mistake we're pushing them away from...

I think we should also come up with positive trends that'll encourage them to want to make greater achievements like many of  us may have....
Selah!

that is why they need a risk management because that will help them out in case of failure , we are not scaring them instead we are helping them to understand the market deeply before further losses they might encountered .
for our years in this market, we have already saw everything along the way.
we even lose and we even earn.
they must understand those first for their own goodness.
Invest in crypto if you have deep understanding and learn more if not.

[palle11]

every trader certainly has a choice to succeed or fail

No trader make a choice of failing. Every one wants to make profit. Except you saying if they don't research or plan very well then they can fail. It is lucrative with trade but needs proper care to succeed and that is why risk management is important. I have not seen a trader wishing for loss but it comes when we don't go the right way and that turns to failure but the first plan is for profit and that is the ultimate target of every trader.

[arbifahrozy]

In order to achieve good profit and save portfolio, risk management is the most important part of trading. If we do trades according to risk management, we can get a good benefit from it. We can also use risk management to get entered at a good dip, which gives us great profit

[aquafinewater]

The purpose of risk management in trading is to make good profit in every market  doing trades according to risk management, it's mean if we are in profit we need to sell in different part so we can get a profit in every pump this thing we can also apply in buying

[zaesvlas]

You should immediately understand that trading is a risk. A trader can invest money and get nothing in return. This must be understood.

[Lanatsa]

You should immediately understand that trading is a risk. A trader can invest money and get nothing in return. This must be understood.

Once you do step your foot into this market then its understandable on what you are dealing with and this isn't something like a childs play for you not to get

serious with things specially you are dealing with a very volatile market which means you would need to be smart on playing with those movements.

Its a crucial thing to have and a must when it comes to investment that's why you should really consider this one out.

[sherenikaw]

the risk of trading does exist but we must also be able to avoid it so as not to fall into losses. why risk management is important for a trader because it is something that must be done so that you can be more careful and alert in trading. Trading requires careful thought so we must also think about the risks that can be obtained if we are not careful and in a hurry. who can control ourselves is ourselves so do the best in various ways to be able to get our goals in trading.

[sumant]

Risk word is very important in trading because of this we can get huge loss in trading. Crypto trading always has been a risky place where your money is not going to be at same point, after entry it will definitely will be on upper side or lower side that's why we need risk management in trading. This solution provide traders to not loss big amount of money and get out of market when share goes to serious fall in price.

[Sihab76]

You should immediately understand that trading is a risk. A trader can invest money and get nothing in return. This must be understood.

Cryptocurrency is a place where you can get both types of results if you invest or trade. If you have enough experience then you can make a profit by trading cryptocurrency . However, inexperienced people sometimes gain but in most cases they have to face losses.

[zaesvlas]

It should be understood that risks in trading are quite frequent, rather even regular. And the trader needs to be ready for this.

[LUCKMCFLY]

As the losses are common in trading and the top traders now a days due to the market situation making losses in that coins which they had expected to get it and go into the ATH, but they are making losses, so risk management should be always taken care of and will look into it as I had told every trader that they need to work with constant patience in trading.

You are right, my risk management is very clear and it does not fail me, for every movement and operation that I normally do I put my stop loss at a maximum of 8%, more than that I do not allow myself to lose because simple, it seems to me that when I reach a 10% I am not one of those who believe or who hope to recover, I prefer to assume my loss and exit the market, in this case I do it that way, when the market is in a lot of uncertainty what I do is go out and wait for the best moment to enter, whether the market is either up or down I prefer to clear doubts, I never enter the market with doubt and when I enter and lose that becomes a unique learning.

[checkmatesir]

As you know that people may face loss as well as success. So if you learn about the planing to win then with this you must have to know about those strategies which are essential to recover your losses. Do not put that type of money which you cannot accept to loss. If you loss in trading then just think that in next step how will you recover this money so it will be better for you if you does not make yourself sad after your loss.

[aquafinewater]

Risk management is mostly need in trading because without this we won't become a successful trdaer we need to see that how much need to jnvest how much savd for dip and how to manage portfolio everything need to know for successful trader