𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗧𝗶𝗽 - 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 🎯

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.
𝟭. 𝗦𝘁𝗼𝗽 𝗟𝗼𝘀𝘀𝗲𝘀

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 𝘵𝘦𝘤𝘩𝘯𝘪𝘤𝘢𝘭 𝘢𝘯𝘢𝘭𝘺𝘴𝘪𝘴.

A stop loss must be placed at the 𝘪𝘯𝘷𝘢𝘭𝘪𝘥𝘢𝘵𝘪𝘰𝘯 𝘭𝘦𝘷𝘦𝘭.

This is the price point which your thesis is 𝘱𝘳𝘰𝘷𝘦𝘯 𝘸𝘳𝘰𝘯𝘨.
𝟮. 𝗔𝘃𝗼𝗶𝗱 𝗼𝘃𝗲𝗿𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴

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.
𝟯. 𝗛𝗮𝘃𝗲 𝗮𝗻 𝗲𝘅𝗶𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆

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.
𝟰. 𝗔𝘃𝗼𝗶𝗱 𝗢𝘃𝗲𝗿 𝗧𝗿𝗮𝗱𝗶𝗻𝗴

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.
𝟱. 𝗗𝗼𝗻'𝘁 𝘀𝘁𝗮𝗿𝗲 𝗮𝘁 𝐲𝐨𝐮𝐫 𝗽𝗿𝗼𝗳𝗶𝘁/𝗹𝗼𝘀𝘀

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.
𝟲. 𝗕𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗲𝗱𝘂𝗰𝗮𝘁𝗲𝗱 𝗼𝗻 𝗧𝗔

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.
𝟳. 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗦𝗶𝘇𝗶𝗻𝗴

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! 🐳 ❤️

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.

𝙃𝙖𝙫𝙚 𝙖 𝙬𝙤𝙣𝙙𝙚𝙧𝙛𝙪𝙡 𝙙𝙖𝙮!

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More from @CryptoWhale

14 Sep
𝗧𝗵𝗿𝗲𝗮𝗱 𝗼𝗻 𝐗𝐑𝐏/𝐑𝐢𝐩𝐩𝐥𝐞 🐳

I've been an active $XRP Investor since 2013. I've spent lots of time researching + comparing alt coins, and have XRP ranked at the top.

$XRP is promising project, with an even more promising future for long term Investors, here's why:
#XRP is a digital asset utilizing Distributed Ledger Technology like #Bitcoin but that's where the similarities stop.

🕒XRP is x1000 faster than $BTC (3-4 seconds)
💰XRP is x1000 cheaper than $BTC (> $0.01)
🌳XRP is better for the environment (no mining)
⚖️XRP is more scalable
Ripple is the 𝕆ℕ𝕃𝕐 company on the market that is actively pushing for regulations.

They've been working closely with government agencies to ensure they are fully compliant.

This gives XRP a huge advantage compared to other alts which will eventually vanish.
Read 8 tweets
8 Jul
Human psychology is studied by many investors because of how influential it is on ones trading behaviour.

It's something that every good investor should learn about.

This thread will provide 8 tips for effectively controlling your emotions while trading.
1. Make sure to not over trade:

Often when someone is on a winning streak, they will feel invincible. They will open several more trades as they think they will all be winners as well.

This over-confidence often results in massive losses
and sometimes erase all prior gains
2. Don't stare at profit/loss while trading:

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.
Read 10 tweets

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