The most overlooked key to long-term trading success.

[Wind_FURY]

This risk management is one factor that traders neglects while trading especially those traders that are lucky to make some good profits from trading, they feel they have arrived and are now experts in trading forgetting to know that it's not all the time they can make profits from trading and they start making trades with higher amounts such that their money won't sustain them for longer trades when they run some losses. Risk management is very necessary because that is what propels a trader for long term trading success.

One good trade is probably luck, two - a coincidence, third - is skill (surely, it's only a phrase, the reality needs much more than only three trades, but I do think the idea is right).

You can't be in plus forever without proper knowledge, experience, and management of risks built up, with that, I totally agree.

 👍

That's definitely why we shouldn't trust the "advice" given by those random people in BitcoinTalk, AND most of the plebs posting on those topics giving their "suggestions".

If they could post their trades' total, and verified PNL that outperforms Bitcoin, WITH a large enough sample size, then OK everyone should listen to that person. If they can't, the only advice I would listen to is Buy the Bitcoin DIP, and HODL.

[doomloop]

Risk management is very essential when it comes to trading, using stop loss and making sure that your trading Capital is properly planned...most people go all in because they trust their strategies too much and they still end up blowing their account... losses is something that cannot be avoided in trading but the damage can be controlled if you follow the rules of risk management.. this is done with the aim of making profit either in a long or short term

Yeah absolutely. Risk management is important and you must have at least enough money to make a comeback if your current set of trades bleed out. Because no matter what we think, the market is totally unpredictable and even the best strategies and traders lose every now and then. A good trader wins more times than he loses on his trades and knows when to cut his loses and stop.

I myself had excellent trades but personally my problem is sticking with some trades despite seeing them not going well. For example recently when mantra DAO collapsed I had the opportunity to sell at a lesser loss but I waited and eventually got dumped.

[Jegileman]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.
Managing losses wisely ensures you survive long enough to enjoy the gains.

Risk management is being overlooked by most traders, although that is not the way it is suppose to be. Risk management plays a vital role in the trading journey of even a successful trader. Without this, you can’t call yourself a successful trader in the first place because you’ll lost all your money to the market without realizing them. Risk management is crucial as it gives more room to adjust to corrections and also to take back from the market what it has taken from you after you’ve already understood the concept.

Successful traders are better known for their risk management policy they adhered to and even though you are not a successful trader yet, you can be a better trader to win in the market than a successful trader without risk management policy enacted in his principles of trading more. Successful trader will only be privileged to use more money than you can use, but if they don’t manage well, they can become bankrupt before you do that uses small capital to trade and grow account with proper risk management policy.

[Natalim]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.
Managing losses wisely ensures you survive long enough to enjoy the gains.

This risk management is one factor that traders neglects while trading especially those traders that are lucky to make some good profits from trading, they feel they have arrived and are now experts in trading forgetting to know that it's not all the time they can make profits from trading and they start making trades with higher amounts such that their money won't sustain them for longer trades when they run some losses. Risk management is very necessary because that is what propels a trader for long term trading success.

Where there is no risk management applied, long-term trading success may not be as possible it is. Instead, you can only be profitable when you’re lucky or when the market favors your trade, but after that, your trades are already prone to losses because you never practice risk management which is a necessity when trading.

Also, those traders who aren’t that highly successful but aren’t losing consistently as well, are actually doing the risk management plan. After all, they won’t be profitable with trading in the long run if there’s no risk management in the first place.

[EarnOnVictor]

         There is a popular saying which goes this way ''The goal of every business man is to maximize profit'' and this saying is the central philosophy of so many trader. Let's be honest, most people get into trading because they want to make profit.

Should this even be the bone of contention in the first place?

Trading and investment are solely for profit-making. This is not gambling, in which some people would claim they are doing for fun. Trading and investment are strict business for those who value them, and no one would ever say they are risking their money in the two for other reasons, if not for profit-making.

[harapan]

     
This then bring me to the overlooked key to long term trading success which is ''Risk Management''  I know to some people this concept may not be as flashy as doubling your wins or make huge profit, but the truth and reality of the matter is that if your loses cannot be properly managed, you as a trader may not even last long to enjoy your wins.

The main purpose of a business or investment or whatever is profits making no doubts and there's nothing far from this one tends to be more concern about, cause the first instance of going into that thing is to make it but then there are other things to be considered while going into such investment, business or trading so you saying risk management is one thing one must consider for along term trading success.. no doubts we make loses as well as profits but then we need to understand that risk are meant to occur to solidify our success in that business.

[Peanutswar]

         There is a popular saying which goes this way ''The goal of every business man is to maximize profit'' and this saying is the central philosophy of so many trader. Let's be honest, most people get into trading because they want to make profit.

This is the main goal of the people why they are committing with the world of trading, because of the chance to get an extra earnings with the market, and if we check it this is not the reality instead we tooks over time and effort just to perfect our trading execution and not all trades are wins so we need to set our mind, effort, and self to be prepared what will happen with the market movement.

         Things like setting stop loss,  not putting all of your money in one single trade no matter how sure you are, understanding your risk to reward ratio, knowing when to sit out a trade , all of this makes a huge difference. Its not about being scared but being smart.

Sometimes people says the market can be your friend either an enemy and one of the best thing you need to do is be prepared if this happen having your stop loss and take profit gives you an advantage until where you will make a trade, until when you will hold to prevent over trade and over engage with your position. Always stick to the trading plan.

[Wind_FURY]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.

Managing losses wisely ensures you survive long enough to enjoy the gains.

Risk management is being overlooked by most traders, although that is not the way it is suppose to be. Risk management plays a vital role in the trading journey of even a successful trader. Without this, you can’t call yourself a successful trader in the first place because you’ll lost all your money to the market without realizing them. Risk management is crucial as it gives more room to adjust to corrections and also to take back from the market what it has taken from you after you’ve already understood the concept.

Successful traders are better known for their risk management policy they adhered to and even though you are not a successful trader yet, you can be a better trader to win in the market than a successful trader without risk management policy enacted in his principles of trading more. Successful trader will only be privileged to use more money than you can use, but if they don’t manage well, they can become bankrupt before you do that uses small capital to trade and grow account with proper risk management policy.

What were you talking about when you posted "most traders"? Are you talking about professional traders? Or are you talking about mere plebs like us?

 

Because if you're talking about mere plebs like us, what's there to "manage"? Most of "those traders" have a very little amount of capital that their only chance, as the believe, is to trade shitcoins on high leverage.

[Mahanton]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.
Managing losses wisely ensures you survive long enough to enjoy the gains.

This risk management is one factor that traders neglects while trading especially those traders that are lucky to make some good profits from trading, they feel they have arrived and are now experts in trading forgetting to know that it's not all the time they can make profits from trading and they start making trades with higher amounts such that their money won't sustain them for longer trades when they run some losses. Risk management is very necessary because that is what propels a trader for long term trading success.

Where there is no risk management applied, long-term trading success may not be as possible it is. Instead, you can only be profitable when you’re lucky or when the market favors your trade, but after that, your trades are already prone to losses because you never practice risk management which is a necessity when trading.

Also, those traders who aren’t that highly successful but aren’t losing consistently as well, are actually doing the risk management plan. After all, they won’t be profitable with trading in the long run if there’s no risk management in the first place.

You cant just that rely yourself about luck when you are dealing up with trading on which this isnt something that you can treat it like gambling because this would be that resulting on having that issue about on busting up all of your trading capital. When you do plan to have on having that long term approach towards trading or wanting to learn up such skills then you cant just that fully rely with luck because it doesnt work anytime plus this isnt gambling in the first place for you to have that kind of approach. We do know that on the moment that you've been that becoming having that kind of impulsiveness towards your trading then you are already that doing gambling work and thats not ideal. Thinking up for long term will be pertaining on having that good approach or realistic way on dealing up with it. You cant just that having this kind of approach because there's no way that you can be able to achieve out success. There's no way that you can be able to learn it up and becoming profitable with it. When it comes to success then there's no guarantee with this even if you do treat up gambling just like on what you do have in mind or on the proper way but still it wont be giving out that kind of assurance that you would be able to be successful into it. It would be still depending on several factors on which you do need up to consider out this way. There are those conditions or time that you might be feeling on giving up just because you've been that trying out your very best but still ending up on having those failing trades and thats why on the moment that you do become that impulsive then you would be derailing yourself into the proper way on how you should be learning up trading. This is for long term approach and not for short term learning kind of skills because success isnt something that you can be able to pursue out and achieve easily, you do need to work hard for it if you do want to sustain or survive this unpredictable space. Dealing up with it isnt something that so simple that you can just that put up your position then wait up to make profits, this isnt how it works.

[bitgolden]

Lol, seriously? Grin Dude, that's like saying, "Most people sleep at night because they want to rest.".

Haha true, this isn't gambling where some can say I am gambling for fun. Everyone is trading for profits and profits only. Yeah maybe there are people who are learning but even when they are supposed to profit, even if they have more appetite for losses.

Those who trade in futures without stop-loss will have to face its consequences because the market won't always go in the direction you've predicted.

Perhaps not just futures but any kind of trading requires you to have stop-loss to avoid losing too much. I feel that a lot of us have become traders because we earned some money due to BTC skyrocketing but not all of us are traders and in some gambling their money .

[Ndabagi01]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.
Managing losses wisely ensures you survive long enough to enjoy the gains.

Thank you for putting it rightly because the author almost mixed things up in a bit. From your reply, two things stand out which is profit and risk management as the key to long-term trading. While profit is the motivation for every trader to continue trading, risk management is easily overlooked and that hurt badly. So, to become a successful long-term trader, it is important to take risk management seriously so as to protect the capital and profits made on it. Without proper risk management, even profits will be lost together with the capital.

You can’t call yourself a successful trader without putting in the best risk management skills into your trades. You will never be profitable and won’t be called a profitable trader without that knowledge of risk management and applying it to all of your trades. It does been overlooked and some may feel having patient is more important. Having patient without employing the best risk management will result to total waste of time and not be praised for imitating one of the attributes of a good trader of being patient while waiting for a trader set up to reach the point of interest to take the trade. Risk management is one of the essential and bedrock of trading, one shouldn’t joke on that while trying to get the best out of trading.

[Wind_FURY]

Lol, seriously? Grin Dude, that's like saying, "Most people sleep at night because they want to rest.".

Haha true, this isn't gambling where some can say I am gambling for fun. Everyone is trading for profits and profits only. Yeah maybe there are people who are learning but even when they are supposed to profit, even if they have more appetite for losses.

Plebs like us may believe we're "trading for profit", but what would you actually call it if your rewards doesn't assure your risks?

  ¯\_(ツ)_/¯

Those who trade in futures without stop-loss will have to face its consequences because the market won't always go in the direction you've predicted.

Perhaps not just futures but any kind of trading requires you to have stop-loss to avoid losing too much. I feel that a lot of us have become traders because we earned some money due to BTC skyrocketing but not all of us are traders and in some gambling their money .

It's doesn't actually matter what strategies and tools we plebs could use. If we can't beat Bitcoin's marker performance with a large sample size, then it's more effective to merely HODL Bitcoin. Less stress, more rewards.

[SmartGold01]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.
Managing losses wisely ensures you survive long enough to enjoy the gains.

I also think it depends on the kind of trading they involved themselves and the type of coin they trade, most times trading shitcoin could be that Very risky and volatile were such trader wouldn't be that surviving for long term, but when they trades on reliable coins it would be that easier for them to manage their risk and how they enters trades. Risk management is one of the basic keys to trade for long term but whenever they don't manage it well they often ends losing while trading that is many people today has tried trading but since it's not forth becoming that productive to them they decide to quit while some switches to other forms of trading to make sure they involve themselves with trading.

[DaNNy001]

Risk management is indeed the most crucial aspect of trading that's being neglected by a lot of traders, this is why after a few years of not profiting from the market most people would easily say that it's a scam but they are forgetting that they are not following the rules...in trading always prepare to incur losses but one thing that would keep things is how effectively you are able to manage your risks

[alastantiger]

This then bring me to the overlooked key to long term trading success which is ''Risk Management''  I know to some people this concept may not be as flashy as doubling your wins or make huge profit, but the truth and reality of the matter is that if your loses cannot be properly managed, you as a trader may not even last long to enjoy your wins.

Risk management is the number one thing every trader is supposed to know. Learn risk management and you won't be out of money for trading anytime. Risk management helps you as a defence and at times, defence is the best step to take than attacking. Risk management help more for long term trading and doesn't have much impact for short term trading because what this type of traders are always after are the quick profits without understanding the market and seeing other potential that the market has to give them in profits. Risk management and perfecting the timing of the market for your buy or exit orders is another expertise that you need to understand as a trader.

[BitMaxz]

Risk management is indeed the most crucial aspect of trading that's being neglected by a lot of traders, this is why after a few years of not profiting from the market most people would easily say that it's a scam but they are forgetting that they are not following the rules...in trading always prepare to incur losses but one thing that would keep things is how effectively you are able to manage your risks

Even if you have a risk management plan, if you just randomly place your position in the long run, you will still get a lower win rate.
Risk management should be part of any trading strategy. You should know what's cheap and what is expensive because that is a way to determine where to place your position. Learning support and resistance can be used to determine where to exit and where to TP.

However, it is still risky even if you know a strategy and have proper risk management; you still need to improve it on paper money until you are profitable in the long run before you are going to live trading.

There's no perfect strategy in trading; always make sure to protect your capital from further losses. Don't think too much about profit; be smart because you are not the only one who trades on the market. Sometimes banks and big institutions are against your analysis, so always keep your SL tight and don't overtrade. Once your setup succeeds or fails, make sure you only do one trade on a single setup and wait for another setup to take a new trade because if you don't trade once in a single setup, that is overtrading, which is not good in the long run because not every day is a win; there are still some days that all trades fail. That is why we have risk management to avoid further losses.

[GreatArkansas]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.
Managing losses wisely ensures you survive long enough to enjoy the gains.

I also think it depends on the kind of trading they involved themselves and the type of coin they trade, most times trading shitcoin could be that Very risky and volatile were such trader wouldn't be that surviving for long term, but when they trades on reliable coins it would be that easier for them to manage their risk and how they enters trades. Risk management is one of the basic keys to trade for long term but whenever they don't manage it well they often ends losing while trading that is many people today has tried trading but since it's not forth becoming that productive to them they decide to quit while some switches to other forms of trading to make sure they involve themselves with trading.

You mean shitcoins like memecoins which the marketcaps are less than a million usd or even those newly created shitcoins? They are gambling, I don't consider it as trading because in just a few seconds you could lose a lot, like those rug pull projects, and a lot of people are losing too much money because of those.

[Oluwa-btc]

         
            At the end of it all the market is uncontrollable, and how you respond to market is what is what can be controlled and your ability to respond well to the market is what makes you more successful than others in the crypto/ forex space.

The results of our trading journey depend on how we make decisions in every market change. We just know that there is no perfect strategy in a volatile market. Even following the strategy of successful traders, we can't ensure that we will achieve the same results. Why? That may differ in the actual situation.

What I think the best long-term strategy is is where we are about to enjoy trading.
   - We never complain
   -We accept losses.
   -contented with small profit.

Trading against our will will never have a successful ending, but losses and frustration.

Emotional balance and discipline is much more undercooked,it's a key factor with typically other awareness checks to repeatedly practice.People with the best strategy fall out from lacking the preffered balance,While many of them focus on technical analysis and bigger strategies.

[SATWAT]

For me, profit is the main motivation for most traders. It's not the only key to long-term success. The often overlooked but crucial factor is risk management (this is very important), without this, even the most skilled trader can lose everything.
Managing losses wisely ensures you survive long enough to enjoy the gains.

I also think it depends on the kind of trading they involved themselves and the type of coin they trade, most times trading shitcoin could be that Very risky and volatile were such trader wouldn't be that surviving for long term, but when they trades on reliable coins it would be that easier for them to manage their risk and how they enters trades. Risk management is one of the basic keys to trade for long term but whenever they don't manage it well they often ends losing while trading that is many people today has tried trading but since it's not forth becoming that productive to them they decide to quit while some switches to other forms of trading to make sure they involve themselves with trading.

You mean shitcoins like memecoins which the marketcaps are less than a million usd or even those newly created shitcoins? They are gambling, I don't consider it as trading because in just a few seconds you could lose a lot, like those rug pull projects, and a lot of people are losing too much money because of those.

Considering shitcoins or meme coins as trading always keep investor on risk while they are not having any chance of going into balance even few think they are gambling or having any tactics always gone on wrong side and peoples regret after putting their money into them.
Having always solid things on your list or portfolio give better response because they are having better chance of giving good results mostly need to do some good work and having all your search before investment small market cap always have problems for peoples.
Usually when peoples jump into this world they needed to be well aware about risk management because this is the most important thing which keep them on better side, and they are able to have well aware about all consequences of trading and basics about this.