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.Do you have a risk plan for every trade or do you rely on luck when markets turn against you?
Luck won't change your losses. You need a solid plan backing your trades and also needs to have a strong exit strategy in case trade doesn't go accordingly. Risk management does not only include making profits but also cutting losses. Not every trade is going to be a success, there will be more failures than success. You need to know when and how to cut the losses to maintain your profits or profit from multiple trades can be vanished just by a single loss.
This is what happens to a lot of new traders. They have a winning streak and suddenly have one single loss which will erase all their profits and they'll have to start from square one. You need to have a solid risk management in place before even thinking to start trading.