Crypto trading offers high rewards but also carries high risks. Without proper risk management, a single bad trade can wipe out weeks or months of gains. That’s why traders set clear rules for position sizes, stop-losses, and maximum exposure.
The goal isn’t just to win trades,it’s to protect capital so you can stay in the game long-term. Overleveraging, chasing losses, or going “all in” usually ends in disaster. Even experienced traders know the importance of managing risk over chasing constant wins. In crypto, survival is half the battle.
Not only to protect capital but also to protect your profits and take them. And that's what many traders do it wrongly, they think that they've won already when they win a trade. But that's enough, it's on how they react afterwards and the action that they do after it.
Do you have a risk plan for every trade or do you rely on luck when markets turn against you?
Well, if I say that I am relying to luck would you believe it? I doubt it. All of us have a plan on how we're going to take risk and I think that it's very important that we do because if we don't have, we might make some but could lose more from that point because we have no concrete plan to follow.