How to Do Risk Management in Crypto Trading

         Risk Management in Crypto Trading

What is Risk Management?
Everyone just saying risk management but no one tells you what is risk management in crypto. 
 

First of all, you should know how much money you have and how much you lose you accept easily ??? After hearing about the loss you all must have wondered why the loss would happen

How we can avoid the loss and reduce the loss is called Risk Management. With Risk management, we can minimize our loss in crypto. I always use Binance exchange for trading crypto. if you want to learn more about crypto and want to earn money so subscribe to my Youtube Channel. Rich and Poor trader. Binance Exchange has many features they also provide a

Binance calculator with the help of a calculator, you can calculate All things. PNL Target Price MOST IMPORTANT LIQUIDATION PRICE Max Open Open Price All these functions Are very important but the Liquidation price is most important because If you are doing future crypto trading then your problem is the liquidation price so to avoid liquidation please use a proper plan before taking a trade, not after taking the trade Learn Crypto to Earn money Click here to learn

Liquidation: if you take the trade in crypto coin and If the price of the coin goes to that particular price, any money you have in the Trade will be gone. and your account balance goes to zero.

if you do not want that your account goes to zero then use a stop loss.

STOP LOSS: this is a trading tool used to restrict the most extreme loss of a trade by automatically liquidating assets once the market cost arrives at a predetermined worth. There are numerous kinds of stop misfortune that can be utilized in various situations.

A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

 Five common Crypto Trading Mistakes

Always Use things before entering into trade
 1 Plan the trade
2  Always use low leverage 
3 Stop loss How to plan crypto trade according to risk management is a question

The answer is first of All do All technical analysis and support and resistance, ema, volume analysis, price action, and your strategy then use your plan let's suppose you have 100$ do not put your 100$ in trade at once always use the plan first, use low leverage as an experienced trader I will suggest you always use 3 to 5x leverage in crypto don't be greedy a coin whose current price is 1.9500 I took short trade means I put that price goes down I draw a zone for my trade you see 1.9300 to 1.976 what do I do I divide my 100 into parts and I use 1.5 percent as my stop loss which is 2$ the price difference between 1.9300 to 1.976 is 2.45 percent% and stop loss I chose is 1.50 percent what happened if I put all money in one step and trade if i put all money in just one step let's suppose on 1.300 when the price goes against 2.45 percent which is 1.976 and i am using 100$ with 5x leverage then i say OMG what is this shit? after watching red, red my trade I mentally got upset and maybe i close my trade why because I am watching my trade in red but if I use my 100$ in parts let's suppose I spend first 1.9300 and use 25 $ when the price goes against me I am using my remaining 75 $ again i spent 25 $ when the price reaches to 1.955

when the price again goes against me I use my reaming 50 at a price of 1.975. i told you my trade zone is 1.9300 to 1.976 and after that level, my stop loss is at about 1.45% above this value so what happens next I will tell you on

calculator you understand the very well all Calculations

you clearly see my draw zone

IN the next picture you see stop loss that i put

now you can learn best with these pictures

You see your entry price at

1.9300 using full 100$

And see if your stop loss hit

Then you face 18 $ loss using 100$ trade money

See if you use 100$ in parts and use your mind and use risk managment then your

Entry price become approximate 1.95 some thing.

Let's see if your stop.loss hit from.buying part you have loss of 10$ instead of 18 $ so always make plane before entering into the trade

If you don't have any plan so please stay away from Crypto trading

Always use risk managment to save your money i tell you in example. Practicle.example.how you minimixed your loss using risk managment.

In upcoming article.i.will.tell.you golden strategy to earn 100$ in every trade so please plan your trade

Always you low leveraged in crypto trading

Always use stop loss