Post
Topic
Board Trading Discussion
Re: Risk management
by
CarnagexD
on 13/06/2023, 05:08:01 UTC
When trading there are rules to observe in other to protect your margin, it's more like if you can't make more money, don't lose the one you have,
 That's where risk management comes in handy.
    The strategies are;


_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.

_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.

_ Reacting to risk, use stop loss and always take profit.

Use stop-loss as your major determinator of risk and take profit as your determinator of possible reward. If there is any case that you can take profit partially, do so. That will make you at least in ease because you realize a part of the profit. Then you put your stop loss to break even (depending on your type of trading).

Just remember that if you are a beginner trader, your number one focus must be to protect your capital by way of proper risk management and gaining a lot of experience trading. Preferably that experience would be for a year. Over that experience, you will encounter losses and moments of drawdown and that risk management is your shield to protect your equity.