successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable
i want to know what methods/rules are there to minimise risks
There could be multiple strategies to control and to handle risks effectively while trading but what I am following in my own trades is, risking only up to 10% of my available capital. Yes, I do set my stop-losses levels only up to 10% of my capital regardless of where is my target levels will be. I have seen people who adjust stop-loss levels based on targets like if a signal is about 20% of profits then they start think about stop loss up to 20% and when market is reaching those 20% of stop loss levels.
But, I do not change my policy of setting stop loss regardless of what signals are suggesting. This helps me to close the trades when market is doing against me like I do not need to wait more but I may start another trade to compensate my previous trades. I believe this is all about how we treat the unexpected losses and how we maximizing the chances to get us into profit zones.
It depends on which coin you are trading into because we know that 10% movement on daily basis can really be triggered on but it would always depend on the market condition just like what we are seeing now where price
can play between 2-5% in 24 timeframe.Setting stop loss of 10% would really be recommendable in times like these but for those days where volatility intensity is high then its better not to put it up yet it can
easily be triggered or hit on.There are indeed several ways on reducing risk but managing or selecting which one would be used will be our job because not all things will work the same as others.