Hello , in every fild of business of life risk managment is very import thing if a persion can learn the risk managment they get succes in particular fild. Risk managment is very important for cryptocurrency also to buy or sell a bitcoin . Today I am going to tell you guys how to manag a risk and I will give you a formula which will prevent you from the losses .
We are talking about idea, plan and action this artical will give you idea you have to plan and take a action.
Let's imagine you buy a 10 trades mins 10 different cryptocurrency and you have to set a 10% of stop loss and set the profit take 20% from this 10 trades some trades will hit 10% of stop loss dont worry dont take tention about it care about thos trades which hiting 20% profit NOTE:- don't take trades back before he goes to profit , we are doing what ... We are taking profit very less and doing loss very much so don't do this first achieve your goals then thing next about the there our goals are 20% profit take .
Now it's your responsibility to search the coins which will give you 20% profit in cryptocurrency market it's not so difficult to search .
So your
POINT NO.1 :- is don't take trades back before your set profit tak it's depend on you how much you want to set a profit take it may be 10% 20% or can be 40 , 50% also it's depend on you. Don't worry for thos coins which are hit to your stop loss just sell them . From 10 coins if 2 coins are hit stop loss but there your have 8 coins which are recovering thos losses and giving profit .
POINT NO. :- 2
Calculation :-
suppos 10% is stop loss and 20% is profit take
You buy 10 different coins
If you are luck
2 coins will hit 10% stop loss
8 coins will hit 20% profit take
It will give you :- 20×8=160
Now 2 coins are given loss 10% so..
160-20=140
Your profit id 140% .
Ex.2 if your 5 coins are hit stop loss
And 5 coins hit profit tak 20%
NOW:- 20×5=100
And 10+10+10+10+10 loss = 50
100-50=50%
Still you getting 50% profit which are assume .
POINT NO. :- 3
Percentage was decided by your self you can make 5% stop loss and 10% profit take or even you can make 20% stop loss and 40% profit take it's all depend on you . I given you idea now planning and action will taken by you .
i have up voted you now you up vote me.
Ya bitcoin is highly volatile so there is lot of risk
thank you for reading @gurumetras i hope it will help full for you
Good info.
thank you for reading...