Crypto Commandment #9: Risk Management | Ten Commandments of Crypto Trading by Caleb Wright
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Crypto Commandment #9: Risk Management | Ten Commandments of Crypto Trading by Caleb Wright

August 19, 2019


Hello my friend, Caleb Wright here from Bitcoin
Lifestyles Club, and in this video I’m going to teach you about the 9th commandment of
crypto trading… Thou Shalt Exercise Proper Risk Management! So many new crypto traders get this one wrong,
its not even funny. Its so fundamental to your survival in the
markets, because only half the game is generating profits, the other half is preserving your
capital. There is nothing worse than having all your
capital locked up in ongoing trades, so you have nothing to work with if a great trading
opportunity arises… So the first key to exercising proper risk
management with your crypto trading, is to find the right position size to use for your
overall trading budget. Many trader’s like to use around 3-5% of their
total trading capital per trade. This gives you plenty of room for error and
an ability to participate in more trading opportunities according to whatever trading
gameplan you have developed. You want to avoid using too BIG of a position
size, or going all in on one trade. This is usually a recipe for disaster, because
you are not going to win every trade even if you are the best trader in the world. And its also going to lock up your capital,
keeping you from being able to take advantage of any further trading opportunities until
one of your trade positions comes back into profit. So pick a position size that is sensible for
your situation, stick with it, and don’t FOMO into coins with overly large positions, no
matter what you are seeing on the charts! The second key to exercising good risk management
is to use a Stop Loss. Now you should ALWAYS use a stop loss with
your trades, unless you are 1000% comfortable with holding for a long period of time…
because you don’t know what is going to happen with the market, whether you are going to
go right into profit, or into the red. Many traders like to set their stop loss to
the maximum amount they are willing to lose on a trade, which is usually anywhere from
5-20%.. Obviously the larger your stop loss margin,
the more comfortable you should be with waiting for your coin to jump out of the red, if it
goes there, and the more confidence you have in your directional bias. And that brings another point, that if you
aren’t comfortable with your coin being in the red area above your stop loss on a trade,
then you lack confidence in your analysis and the trading opportunity, meaning you shouldn’t
be in the trade in the first place. That’s something important to recognize! If you can exercise good risk management by
having a strategy for your use of position size that fits your situation and by using
a stop loss to mitigate loss on your shorter term trades, you will be well on your way
to long term success and profitability as a trader… Trading the crypto markets should not be looked
at as a sprint or a race to ‘get rich quick’. If you have a get rich quick mindset, you
should get rid of it as fast as possible, because it’s not going to serve you well in
the crypto markets, where patience and timing are key. True success with the crypto markets or any
financial market for that matter is more comparable to a marathon. You take it slowly but surely, exercising
the proper risk management precautions, so that as you build upon your capital and overall
wealth, you are also preserving your capital by mitigating loss whenever you can. This is the mindset of a successful and WINNING
cryptocurrency trader, that is able to not only survive the crypto markets, but thrive
and be profitable for the long term. And if you follow the principles in this training,
you will be well on your way to becoming the winning crypto trader you are meant to be…. Caleb Wright here from Bitcoin Lifestyles
Club, and I hope you got massive value out of today’s 9th Commandment of Crypto Trading
training and feeling inspired to take your skills to the next level. Watch out for the last segment of the 10 Commandments
of Crypto Trading, that I have put together just for YOU. Where I’m going to give you the last very
important piece of advice in this video series, that will help you avoid the costly mistakes
made by so many unsuspecting crypto noobs who part with their crypto due to bad choices
made with a get rich quick mindset. And by the way, if you want to fast track
your way to mastering the crypto markets by developing your skills as a trader, you should
check out the powerful crypto trading education and mastermind community of WINNING crypto
traders available on the Bitcoin Lifestyles Club platform that we have put together to
help you maximise your potential with crypto! Just click the link below this video for more
information, and start accelerating on your path to crypto wealth and start living a financially
free lifestyle starting today…

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