Thread by @Momentum_6

Very talented trading geniuses can still go bust if they don't have good risk management skills. Here are some thoughts and tips on how we've learned to approach and think about #risk: bit.ly/3uhlGMh

1/ There's endless opportunity and those with enough knowledge and skill can just keep winning while 80% of #traders fail. The 2 most significant areas to focus on, if you want to stay on top, are #education and mastering self-control

2/ Making decisions about how much to allocate to each of your favorite asset classes doesn't need to be stressful. By starting with a hard number of maximum possible loss relative to our net worth, we can establish relative percentages to use as a guide for sizing our bets.

3/ If you're always all-in, you'll eventually get #Rekt. spreading out our risk capital across several platforms can insulate us from complete financial ruin. We recently posted a great thread covering this and other common #DeFi mistakes:
bit.ly/3584QHe

4/ Education is insanely important if we plan to make it, and keeping up with crypto's ever-expanding financial vocabulary is an important part of making well-informed determinations about your actual risk exposure. We shared our favorites recently:
medium.com/momentum6/mome…

5/ A healthy #mindset is an often under-rated necessity for any successful risk manager. Certain strategy games like poker can help you develop the psychological fortitude you'll need to beat the game of #investing and #trading. Here's a good example:
medium.com/momentum6/pock…

6/ We should always be conscious of the possibility of Black Swan-type events, but also keep in mind that under the worst possible scenarios, how much our portfolio is worth might be the least of our concerns. Keeping things in perspective helps us keep our decisions reasonable.