Proper risk management?

[sana54210]

Pro traders do have some guidelines or rules that they should never break. But it's not easy to really stick to a written strategy if psychology can't be controlled. Even ProTrader still has psychological problems which will certainly have an impact on trading. and the important point is capital reserves and capital management. Trading will be calm and according to the rules if there is a capital reserve to buy at a dip price.
The use of stop loss and profit targets can be very helpful.

I do not think that professional traders have that much psychological problems as you may think. I mean of course they do, a bit, but that is very tiny and doesn't change it too much. I have seen people trading with hundreds of millions of dollars per day and they were not really that much worried about it, they do not consider it as big money but more like game money, it is just their job.

So, when it comes to making decisions, they do not feel like they should be doing anything different because of something changing or losing money or winning money or anything. They just look at it as numbers, like some high score in a game and try to beat their own previous high score and play very well.

[taufik123]

-snip-

A little or a lot it will still affect trading. Professional people already have a lot of experience and they know what to do when the market is not going well. they also have a lot of capital reserves so they can manage it well.
those who are professionals and have orders of hundreds of millions of dollars can be called Whales, they certainly have the power to manipulate the market and play with other people's psychology. We as small traders just need to follow them and don't go against the flow.

[Fatunad]

 Mastering those three does take a long time. If you are not good at it at first, or even after a year or two, do not be worried. People may see your message and think that you need have all three locked down before they could be a good trader, but that is not the case, you can still be a good trader without being masters on all of those. The only difference is, if you managed to master them, then you REALLY do become a great one, like unbelievable one. So they are very important, they are the decider between "this is my full-time job now" versus "I am making money from it", and anyone who has been involved knows the difference between the two.

It would really be a long time and this is something that you couldnt able to get it out within few months or even on a year later which means that developing these risk management skills wont be simply but also
not impossible for you to commit out so it would really vary.Risk management is crucial when it comes to investment because it do matter on how you do handle out decisions whether you do take profits
or would be basically buying out coins depending on the opportunity that you are seeing.

[bitgolden]

It would really be a long time and this is something that you couldnt able to get it out within few months or even on a year later which means that developing these risk management skills wont be simply but also
not impossible for you to commit out so it would really vary.Risk management is crucial when it comes to investment because it do matter on how you do handle out decisions whether you do take profits
or would be basically buying out coins depending on the opportunity that you are seeing.

There are things out there people say you could master with 10 thousand hours of doing it. Like for example, if you want to learn how to play the piano, you won't be good on your first ever hour, you will just learn what the notes means, but on your 10th thousand hour, you will be playing mozart like it is back of your hand without a problem, obviously there will be other people who are better than you, but you won't suck and you will be great at it, maybe even make money from it.

For some reason, people think that trading is different, like somehow you could spend maybe maximum of 100 hours and suddenly be great at it. It is no different than piano, on your first hour of trading, you won't even trade and just learn the terms but on your 10th thousand one you will be trading leverage in minute candlesticks and making profit.

[Cling18]

Thay can be helpful in trading, but emotion is very important aspect to face while trading. Risk management in this case can be helpful for people that are trading several coins at a time, this is common in forex trading. Since I have been trading cryptocurrencies, I noticed their price move in the same direction, I prefer to choose just one coin and which is bitcoin.

What I am trying to say is that risk management is beyond using app or any software that will calculate the percentage wining and losses, it is also about mindsets and emotions about opening and closing a trade at the appropriate time.

It will surely be a big help, especially to those who are having a hard time managing their funds. It will be a big help for us to handle our trading journey appropriately but yes, handling our emotions would also be pur first priority since that will have a huge impact on our trading life. Managing and handling all the aspects that affect our trading journey is an advantage for us to gain the profit that we want without panicking no matter what the market situation is.

[South Park]

In crypto risk in trading is big thing to manage. As I understand emotional person can not control risk because emotions does full time job in our body, one trading going down or up millions of emotions going throughout. Control emotions. Next thing is not in hurry to buy anything means out of market is safe place. Third is play on big players like BTC, Eth, BSC etc to minimize risk. Forth is not put all money at one place you will always get loss. Trading is very simple in looking but very hard in doing specially cryptocurrencies.

That is by far the biggest problem that newbies have with this market, in theory trading is an activity that is incredibly simple, the only thing you need to do to earn a fortune in the markets is to buy a coin at a cheap price and then sell it for an higher price, nothing could sound easier than that, however since everyone is striving to achieve the same goal then this means that the markets are extremely competitive and any edge no matter how small can mean the difference between becoming a winning trader or a losing one, which is why we need to strive to learn as much as we can before we even enter the markets.

[tvplus006]

...60 wins 40 losess you still have an amazing winrate as long as you have a proper risk management..

In this case, it is a good result that the number of profitable trades is greater than the number of unprofitable ones. But as I understand it, losing trades are not limited to stop loss, so the loss is comparable in size to profitable trades. It would be better if they had a lower value compared to profitable trades.