news

bitcoin

1 X bitcoin bitcoin =

Tuesday

22 October 2019

Mastering Emotions and Managing Risk in Cryptocurrency Trading

Mastering Emotions and Managing Risk in Cryptocurrency Trading


smart summary beta

Developing a successful risk management plan is paramount in minimizing unexpected outcomes, translating into an overall reduction in your losses.

A successful risk management plan should also run parallel to your cryptotrading journalrecords, working in conjunction to curb poor trading behavior while simultaneously justifying your fundamental expectations. .

“I usually break even” – When this occurs it could be a sign that your risk management is effective, however, you are also too risk averse and will fail to capitalise on anything substantial or you are barely able to cover trading fees.

“I make a small profit” – When this occurs it could be a sign that your risk management is effective, however, it is also an indication that you aren’t.

It is usually driven by emotionally charged decisions made in haste, such as closing a position too early because of what is known as “weak hands.” “I make a large profit” – When this occurs it is a sign that your risk management strategy is working well and that you have reached a pinnacle in risk aversion by applying trading sizes to the appropriate risk.

Goto Full Article

bitcoin bitcoin price

$8233.16

24h

Live Average

bitcoin

News Article Sentiment

positive

Score (0)

Article Metadata

author

site

coindesk.com
Market data feeds provided by cryptocompare.com
bitsmart 2018