Risk Management is a Core Skill for Traders
If you have less than one year of experience with trading or with Blockcircle, it is advisable to manage your risk closely.
One of the biggest mistakes new traders make in crypto is they put too much of their total portfolio into one specific coin. Every coin is high risk, and putting too much of your portfolio into one coin is never advisable.
When Crypto Hunter makes a trade, he often uses a very small percentage of his total portfolio in that trade. The percentage in each Blockcircle “Trades” entry is detailed below.
Patience is very important for Beginner traders. If you invest into a project make sure you only invest money you can afford to lose as crypto is extremely high risk.
It is very easy to get overhyped and invest a huge amount into a project when the market is doing well.
It is equally easy to sell everything when the market is doing poorly.
Using the Blockcircle Trades Channel
Here is an example of one of CryptoHunter’s entries;
On line 5 you will see “1% risk to 0”. This means that on this single trade, CryptoHunter is choosing to risk only 1% of his entire trading portfolio account and he may be prepared to hold the token until the price goes to zero, such as if the project failed to gain any speculative interest in the market.
For example, if you are trading with an account that is $100,000, the equivalent risk would be $1,000.
This emphasizes the importance of patience and only investing small amounts into a given trade, especially for beginner traders but also for traders of all levels.
Read more Tips for Beginners Here
