How to lose Less With Risk Management?

this mini article runs contrary to the yolo attitude observed in crypto traders, but we're glad you're here if you have yet to lose in the crypto markets, congrats let's try and keep things that way this starts with identifying the amount of risk you're willing to take the goal here is an efficient trade setups, where you have a plan according to the perceived risk involved this means discipline with regards to both gains and losses here are some things to keep in mind define exit criteria being stubborn and holding a position long after it becomes unprofitable is a shortcut to going broke given typical crypto volatility, one bad trade can be enough to wipe out multiple, prior, profitable ones this also means defining exit criteria to capture profit implementing the 1% rule the number one goal is to live and trade another day for this reason, some only use 1% of their capital per trade this ensures diversity in positions, and limits loss of course, this number can be adjusted based on individual risk appetite making use of stop losses in short, this is a mechanic used to automatically exit a position if the asset's price reaches a certain point it's important to account for volatility https //tuned zendesk com/hc/en us/articles/4404300288786 in regular price movement, to avoid triggering a stop loss too early only trade what you can afford to lose just because this advice is boring doesn't mean it's wrong discipline maintains wealth