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.
Very well said. preserving your capital and not losing any percent of your benjamin is a win.
Yes Risk management is very important for crypto trading. Without proper knowledge about risk management there has huge possibility to loss our valuable fund. I think we have to follow some things to trade to avoid loss Fund like
* Never we use all fund at a time in trade.
* Never we will Crazy in trade.
* We have to avoid greedy.
* Always use stop loss and take profit.
* Never trade opposite of market train.
* And we have to cool when we trade
I think if we follow that's we will capable to reduce risk. To avoid loss our valuable fund we have to do proper risk management. Otherwise we loss our valuable fund.
This is easier said than done. We all know this as a trader. But how well can you follow your well-written risk management plan determines your result. It doesn't matter how much you know managing funds, it all lies down on how are you able to follow it. Not only that we have money or fund. We also have
mental capital which we also preserve. If we lose this, we can't expect ourselves to perform well in front of the charts. It's not only the monetary value, but the psychological value of the risk involved.