What is risk management in trading??

[Rehan Zakir]

Risk management is more easy to understand if you just explained it in a way about risk management being more into implementing stop/cut-losses and profit taking into every ones plan. Setting up cut-loss points and profit taking points or what others know about entry and exit points is how a normal trader earns money and also reduce/minimize the losses a trader will have if a trade goes wrong. A traders must also know how to be satisfied with their earnings and they need not to be looking back if ever they hold for it for a couple of days. A lot of traders experience this after taking profit yet the value of their crypto keeps going up they need to lose this kind of mindset as they already have a trading plan in action.

Please share your suggestions.

[Dora Walletinvestor]

Risk management is a very very important part of trading since cutting your losses short is essential for being profitable. There are different ways to do this, for example calculating risk percentage, risk-to-reward ratio or position sizing.

[Abubakar56]

Before you can start trading or investing on of the first thing you have to learn is risk management, in Cryptocurrency risk management is very important to avoid lost of all your fund is better you invest any amount you know you can afford to lose in Cryptocurrency and don't borrow money to invest thats very bad one of the worst thing you should do is to borrow money to invest. I believe there are still lot's of things you should know about risk management.

[jorekol]

DYOR and evaluate before just following the solution. Talking on my favs, I'm up to StrongBlock, excited. That's the first and only blockchain-agnostic protocol to reward nodes for supporting the infrastructure of their blockchain. Standard passive income no matter how many nodes increase. This is unlike decreased APY figures as the pool size increases with the LM programs. The rewards remain the same. For non-technical node creators, StrongBlock makes it possible to achieve reliable income from STRONG and native blockchain staking rewards. StrongBlock also acts as a validator on several chains, with staking rewards providing future benefits to STRONG holders. 28K Nodes 🥳$STRONG community voice = music to our ears

[gabbie2010]

Before placing a trade I consider my risk to reward ratio to be at least 1:1 based on trading strategy which can have a 3 to 5 straight win anything lower than that I wouldn't embark on such a trade, I also consider consistency of winning most of the trades once the strategy losses 4 or 5 in a row that calls for a review of the strategy which is very unlikely because cryptocurrency market can only be bullish or bearish season i.e shorting in a bearish runs or longing in a bullish runs.

[robert20]

In my opinion risk management is very necessary for almost every types of traders. This is a must to become a successful trader. This practice can grow your portfolio better if you can use it correctly. But you first need to have some experience of the market and trading to know how to manage the risk.

[Traderbtcc]

Risk management is simply the process of using a strategy of cutting up losses in a trade and also ensuring that a trade doesn't blow off an account, no matter how knowledgeable a trader is he is supposed to apply risk management to ensure his account is safe guarded, most time what we don't expect might happen, like the market movement might turn against us, this is why we need risk management.

[Paglamon]

To be profitable in every investment you must have a full idea of ​​cryptocurrency. I think if there is any risk management in the cryptocurrency market then it is never possible to make a profit by investing in them. Cryptocurrencies are growing in popularity around the world. However, risky managements resort to various strategies for fraud. I think to avoid these you must gain a lot of knowledge and ideas about cryptocurrency. So as to help every investor benefit.

[Mistroy]

The first step that can not negatively affect any business or organization is risk management.  If you do not have any prior preparation to do any business, the trader has to face risk.  So a trader needs to know the details about the market.  How to conduct business.  To be a successful trader, he must avoid risk management.  So a trader has to learn different strategies by managing risk.  Otherwise, a businessman can never be profitable.  A trader must avoid risk measures.

[Limabd]

Before investing in cryptocurrency, you need to have a good knowledge of it. The cryptocurrency market is growing in popularity around the world.  However, there are some corruption cycles. Through which many traders are being deceived. So for every profitable investment you need to have a thorough knowledge of cryptocurrency. Only then can you avoid risky management shots. Cryptocurrency is a good investment market.  But to be profitable here, you must look at the market and be careful about the currency.

[saprakib]

In my opinion risk management is very necessary for almost every types of traders. This is a must to become a successful trader. This practice can grow your portfolio better if you can use it correctly. But you first need to have some experience of the market and trading to know how to manage the risk.

Yes risk management is the the most essential things on trade .It will help you to increase your profit ratio and with less risk .It actually mean to me that where you wanna take your profit and cut your losses .In a point you will select to cut your losses and set a limit it will help you not to fall on huge losses .Every expert trader always calculate it and take his profit with ratio.

[toltyot]

I evaluate every solution, up to p2p trade field, not many key players. I'm excited by TXA. TXA project aims to create cross-chain decentralized settlement layer for hybrid exchanges such as Tacen Platform. TXA token is an utility token of the TXA Settlement Layer that will ensure that trust is minimized for the settlement of peer-to-peer trades. Check, would discuss.

[Hassan50]

Before you go into trading or cryptocurrency in general I believe one of the most important thing you should know is risk management how to manage your risk and how to reduce the way you lose money and to know the amount you will always invest in your coins.

[roberalberto25]

Yeah, risk management is most necessary before trade any coin.