Could improper risk management makes trading unprofitable ?

[Sincerem]

I had one funny experience sometimes ago. Normally ever since I came to understand about cryptocurrency , I was made to understand that money could be made by trading or investment . Then I was so curious to make money from cryptocurrency , I came across so many experts who were so good with market prediction. Some even choose to take in people into their signal group for a duration of time for free.

Luckily I was selected into the signal group, Because of this opportunity I have to quickly raise a trading capitals so as to benefit from the free signal from the group. Trading signal were being dropped almost on a daily basis and from my assessment those signal were 75% accurate.

After 6 days of being in the group, my $30 worth of trading capital drops to $19 which indicates that I was not benefiting from the signal but rather I was losing. After a series of interaction with the signal expert, I was told that the reason for my inability to make profit was as a result of improper risk management..

Personally I did not understand , but what I observed from my few days on the group was that a single Fail trade will wipe out the profit i makes in two days together with part of my capital. Could this be as a result of improper risk management or any other thing I don't understand ? Please share your ideas. Thanks.

 

[glitch]

Investing will always have a risk unless it is rigged. If it gets to a point where it is rigged in everyone's favor, you would not be able to make a career out of it. You would either end up making a small percentage back or breaking even.

 

[Lens]

It is very important to take into account the risk management before you venture into cryptocurrency trading. If you do not know how to manage risk, then you will possibly record lot of losses.

 

[Ononivami1]

It is advisable that one should learn about risk management before trying out any business. It is not only peculiar to cryptocurrency. It is a global financial practice that one should not invest more than 2% of your account in any trade, if you don't want to incure losses.

 

[Shigobad20201]

Improper risk management in business always lead to unprofitability in the line of business , you make sure you also do your research on the risk factor of the business before going into the business

 

[Robust]

Yes, once there is improper risk in the management of either a company or a business, the business or company will either die graduately or being unprofitable in all the do.

 

[Kvngsammy]

From my recent experience in forex trading, I've come to learn that risk management is about 50% key in determining how successful a trader would be. I've realized this cuts across all other trading systems as well. That's why we're being taught emphatically to have a good risk management system.

 

[Chibson]

one of the most important skills in cryptocurrency trading is proper risk management. If you do not know how to manage risks available in the forest marketing you will end up not making any money and losing a lot.

 

[Popular]

one should try to learn the skill of knowing how to manage risk before venturing into cryptocurrency trading. If it not properly managed can cause previous earning to drop.

 

[Syldan]

Actually risk management strategy is very important and it's expected of every business investor to always take note of his risk management in othet to sustain his business at all time and in all situations.

 

[Sotherefore]

Most times , if you are passing through a cryptocurrency class the most important thing your expert will always try to remind you is risk management. personally I can't trade cryptocurrency or forex with good understanding of technical and fundamental analysis alone , proper risk management is a must for every trader.

 

[Good-Person]

Risk management is definitely a very important part and I have learnt this after I suffered from losses. I used to leave open trades during trading which led to losses.

 

[Chibson]

if you are interested in making money from cryptocurrency one of the most important skills you need to learn his risk management skills. Many people who trade cryptocurrency make losses because they lack this basic skill.

 

[Shigobad20201]

You should be able to learn more about how to manage risk when trading onlune and offline , because with proper risk management , the looses you will be making will reduce .

 

[Syldan]

Risk management is very important in all forms of business and it's always advisable to bear in mind for anyone who neglects is absolutely not ready to be successful in his business because he may not be able to withstand challenges when it occurs.

 

[Sotherefore]

You should be able to learn more about how to manage risk when trading onlune and offline , because with proper risk management , the looses you will be making will reduce .

Sometimes a trader with high accuracy of trading will mostly not be able to earn single profit if he is trading without good risk management. I believe proper risk management play a very important role in succeeding as a volatile market trader.

 

[Kane]

If you are trading, you can manage your risk by trading different assets. For instance, you can trade stocks, forex, or crypto. When you are trading multiple assets, risk management will be easier. You will also have to trade multiple trading pairs to mitigate the risks.

 

[Frank]

I had one funny experience sometimes ago. Normally ever since I came to understand about cryptocurrency , I was made to understand that money could be made by trading or investment . Then I was so curious to make money from cryptocurrency , I came across so many experts who were so good with market prediction. Some even choose to take in people into their signal group for a duration of time for free.

Luckily I was selected into the signal group, Because of this opportunity I have to quickly raise a trading capitals so as to benefit from the free signal from the group. Trading signal were being dropped almost on a daily basis and from my assessment those signal were 75% accurate.

After 6 days of being in the group, my $30 worth of trading capital drops to $19 which indicates that I was not benefiting from the signal but rather I was losing. After a series of interaction with the signal expert, I was told that the reason for my inability to make profit was as a result of improper risk management..

Personally I did not understand , but what I observed from my few days on the group was that a single Fail trade will wipe out the profit i makes in two days together with part of my capital. Could this be as a result of improper risk management or any other thing I don't understand ? Please share your ideas. Thanks.

When it comes to trading, you should know when it is the right time to stop trading and when you should continue. If you fail to do all of that, then you are making it difficult for you to make profit in the long-run. I have seen some say that a little profit is not bad in trading, but what about when you make a big loss? So, doing a proper risk management is very important.

 

[Good-Person]

When it comes to trading, you should know when it is the right time to stop trading and when you should continue. If you fail to do all of that, then you are making it difficult for you to make profit in the long-run. I have seen some say that a little profit is not bad in trading, but what about when you make a big loss? So, doing a proper risk management is very important.

Well, I made the mistake of not calculating the risk properly and I ended up losing money. Risk management depends on proper calculation and analysis. This is quite important for many traders and businessmen who plan to invest in any kind of business. However, now I have learned from my mistake.