๐—ง๐—ฟ๐—ฎ๐—ฑ๐—ถ๐—ป๐—ด ๐—ง๐—ถ๐—ฝ - ๐—ฅ๐—ถ๐˜€๐—ธ ๐— ๐—ฎ๐—ป๐—ฎ๐—ด๐—ฒ๐—บ๐—ฒ๐—ป๐˜ ๐ŸŽฏ

Risk Management is the most important and misunderstood topic in Investing.

This thread will talk about how to effectively manage risk, and avoid substantial losses.
๐Ÿญ. ๐—ฆ๐˜๐—ผ๐—ฝ ๐—Ÿ๐—ผ๐˜€๐˜€๐—ฒ๐˜€

A stop-loss is designed to limit an investor's loss on a position that makes an unfavourable move.

One key advantage of using a stop-loss order is you don't need to monitor your trades daily.
A stop loss must be based on ๐˜ต๐˜ฆ๐˜ค๐˜ฉ๐˜ฏ๐˜ช๐˜ค๐˜ข๐˜ญ ๐˜ข๐˜ฏ๐˜ข๐˜ญ๐˜บ๐˜ด๐˜ช๐˜ด.

A stop loss must be placed at the ๐˜ช๐˜ฏ๐˜ท๐˜ข๐˜ญ๐˜ช๐˜ฅ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ญ๐˜ฆ๐˜ท๐˜ฆ๐˜ญ.

This is the price point which your thesis is ๐˜ฑ๐˜ณ๐˜ฐ๐˜ท๐˜ฆ๐˜ฏ ๐˜ธ๐˜ณ๐˜ฐ๐˜ฏ๐˜จ.
๐Ÿฎ. ๐—”๐˜ƒ๐—ผ๐—ถ๐—ฑ ๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—น๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐—ฎ๐—ด๐—ถ๐—ป๐—ด

The most common group I see using high leverage is NEW and inexperienced Investors.

Avoid unless you have years of experience, and a high success rate. Otherwise, it's gambling.
๐Ÿฏ. ๐—›๐—ฎ๐˜ƒ๐—ฒ ๐—ฎ๐—ป ๐—ฒ๐˜…๐—ถ๐˜ ๐˜€๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜†

Knowing when to exit is just as important as knowing when to enter it.

Keeping a winning position open to accumulate profits can end up with a market reversal that erases all gains.
This tip is especially useful when it comes too Investing in these ICO/DeFi tokens.

Many are told unrealistic price targets, and never take profits or sell. Once the market pops, they will be left bag holding the coin forever.
๐Ÿฐ. ๐—”๐˜ƒ๐—ผ๐—ถ๐—ฑ ๐—ข๐˜ƒ๐—ฒ๐—ฟ ๐—ง๐—ฟ๐—ฎ๐—ฑ๐—ถ๐—ป๐—ด

NEW Investors also commonly open too many trades.

They fear that they will miss out if they're not constantly in the market.

The reality is, you should be on the sidelines more often, and wait for the perfect moment to open a trade.
๐Ÿฑ. ๐——๐—ผ๐—ป'๐˜ ๐˜€๐˜๐—ฎ๐—ฟ๐—ฒ ๐—ฎ๐˜ ๐ฒ๐จ๐ฎ๐ซ ๐—ฝ๐—ฟ๐—ผ๐—ณ๐—ถ๐˜/๐—น๐—ผ๐˜€๐˜€

People who do this experience a surge of emotions. To most traders, this figure is an expression of ones success.

As long as you have stop losses set, and are following trading rules, you are protected.
๐Ÿฒ. ๐—•๐—ฒ๐—ฐ๐—ผ๐—บ๐—ถ๐—ป๐—ด ๐—ฒ๐—ฑ๐˜‚๐—ฐ๐—ฎ๐˜๐—ฒ๐—ฑ ๐—ผ๐—ป ๐—ง๐—”

People like George Soros didn't become the biggest Investors by chance. They developed strong technical analysis skills by years of research.

Understanding markets through a technical perspective will help you decrease risk.
๐Ÿณ. ๐—ฃ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐—ผ๐—ป ๐—ฆ๐—ถ๐˜‡๐—ถ๐—ป๐—ด

If you're losing sleep at night because of your large position size, you're likely over invested.

It's best to avoid going all in with your Investment capital unless the market is extremely undervalued.
Thanks for reading! ๐Ÿณ โค๏ธ

It would be very appreciated if you could all share and like the thread in order to help others properly manage risk, and avoid large losses.

๐™ƒ๐™–๐™ซ๐™š ๐™– ๐™ฌ๐™ค๐™ฃ๐™™๐™š๐™ง๐™›๐™ช๐™ก ๐™™๐™–๐™ฎ!
You can follow @CryptoWhale.
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