Post
Topic
Board Trading Discussion
Re: Risk management
by
jasonjm
on 26/06/2023, 08:00:52 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.

In crypto trading/investment, there is always the risk of losing your money. Stop-lose is just one strategy that you could employ. You need to determine the amount of money you are willing to risk, if you are a newbie then you should start from a small amount.  Diversify your portfolio. Look at the potential return on investment before putting money into the coin and continuously monitor and review associated risks.