Quote from: touseefahmad1771 on June 03, 2023, 11:37:50 AM

You're absolutely right. Risk management is a key aspect of trading and investing. It involves implementing strategies and following rules to protect your capital and minimize the potential for losses. Here are some key principles of risk management in trading Determine the maximum amount of risk you are willing to take on each trade or investment. This can be defined as a percentage of your total capital or a specific dollar amount.

Managing risk is a topic for the trader who is between a newbie and a veteran. This comes with experience and most traders who fail to manage it end up with losses and eventually quit the trading scene. Therefore this should be started as the person is beginning their trading journey. The use of newly launched coins increases the risk many fold and I think this can be avoided by keeping the choices limited to bitcoin. Again humans love to take the risk and go with something that is new. So this risk assessment and management will continue.

Diversifying the portfolio leads to a large assortment of risk classes. This should be done based on how much one can handle stress.