Risk and Money Management
Yes TraderCobb has blown out several accounts and had the dreaded margin call on more than one occasion. Thankfully he has learned from these lessons very early in his trading career, so you don’t need to suffer the pain now. Listen intently, this one may just save you a fortune! www.tradercobb.com and don’t forget to share this content with everyone you know!
This show is proudly sponsored by Coinspot.com.au. With the largest range of cryptocurrencies anywhere in the Australian market. With an updated verification process. you can now be verified using only your driver’s license or passport within seconds.
You can instantly deposit funds and instantly start buying and selling your favorite cryptocurrencies in under five minutes. Coinspot is giving away $10 worth of free Bitcoin for each verified user, once they make their first deposit. Just go to Coinspot.com.au/BTC123.
Good day guys, TraderCobb here. Don’t forget to follow me on twitter @TraderCobb C O double B. Jump on my Facebook and give me a subscribe on YouTube.
Don’t forget to visit tradercobb.com and register for the bi-weekly video trading newsletter. So guys, next video, next task, next product, next thing for you to pick up as a free gift from me to you. You know, I put out huge amounts of content.
I love doing it. I’m trying to educate an entire industry here and I’m doing it all by myself other than my wonderful team. And of course, all of you guys that are out there helping supporting and sharing the TraderCobb love.
Getting it out there across your socials. I really want to say thank you for that. I appreciate it.
We are growing really, really quickly. And whether people join me or not, I do want to give people the chance to decide whether or not what I put out is something that suits them. So this lesson today is understanding risk and money management, which is the most important aspect.
And something that I’m seeing increasingly concerning and cryptocurrency markets is the fact that people are super focused on profits and profits only. And that might seem like a strange thing to say if.. wait hang on a sec TraderCobb, isn’t it about making money?
No, it’s not actually. It’s about making sure you keep the money that you have to start with. Okay, that is what it is about.
Now as a trader of 11 years I’ve been doing this for long enough to understand the importance of risk and I’ve made the mistakes, right? I’ve blown out three accounts in my first two and a half years, I blew out that’s margin calls on three accounts. Okay, so I’ve learned my lesson.
My first share deal when I bought was 16 years old, okay, I saw it go from eight cents to 88 cents and then go bankrupt. I am well versed in risk. So it’s really important that I give you some of the tips and tricks to understand risk, and then go forward and use it to keep you safe.
Really, that’s the most important thing as a trader, my capital is my capital. So my product is money. If I don’t have funds to trade then I am not in business.
So it’s very important that I look after my trading business. And new traders tend to focus on reward; When Moon? When Lambo? this is the sort of ship that I here in cryptocurrency land.
Sure, that’s great. It is a young marketplace and there are young participants. It’s a tradition, or not a tradition.
It’s an opportunity for people that don’t have a lot of money to get into a marketplace, like they wouldn’t be able to access in stocks and shares quite so easily. So I applaud that. It’s part of the big reason why I’m such a, you know, advocate for cryptocurrency.
And this marketplace, in general, is that it does help young people get a leg up. It’s creating some amazing opportunities for us. And it’s also helping to change some of the ways that we do business around the world and do things across the world.
I really love so many things about it. New traders focusing on reward when they should be focusing on risk. Now, I learned something more– two and a half years, three years into my trading career when I’ve made all the mistakes under the sun.
What I learned was the professionals focus on managing their risk and if I learned how to do what good traders do, well, I would naturally become a good trader. So this is an important lesson. It’s an important part of your development.
Common questions that I get constantly are where to take profits? Why not moon? When the take one to one and when to take five to one and these are all very valid questions apart from, why not moon?
All of these questions, of course, are not answered in this little tiny, short snippet. This is a small free lesson. Of course, I cover all of that in the programs on my website.
But guys, it’s very, very important that we focus on a few things. Asking the questions about when to take profits, where to take profits, and how far to take profits is very fine, if you first ask yourself, How do I manage my risk?
Because risk is the most important thing you will ever learn. Focus first on keeping the money that you have. And then you start seeing the markets in a different way.
You’ll find that the red mist or the the erraticness of your thought patterns, the excitement, the emotions and all these things are negative when it comes to being in the now and making the right decisions. If you can start to consider your risk, you’ll start to see the markets differently.
You won’t go and chase the John McAfee, you know tweets. You won’t go and chase what people are saying. You’ll be focused, you’ll be centered, and you’ll start to focus and realize that it’s up to you to make money in this market.
Because it’s up to you to maintain your money. So you’ll be more selective. You become a more rounded trader.
And that’s only a good thing. So guys, risk and money management is absolutely important. Targets are not as important as the management of your risk.
But at a minimum, I aim for one to one. That means if I’m risking $600 on a trade, I will be at least taking $600 profit or looking to scale out of that trade to get it risk free and leave my stop loss in the correct technical place.
A risk-free trade you don’t just want to move your stop loss to your entry point because that is silly. Why go through follow checklist, be structured, be disciplined, follow routines and do everything correctly, to then throw all that out the back door and just jam your stop loss in no man’s land?
It doesn’t make sense and it’s not what I do. I’ll show you when to aim for higher targets because this is really important. You got to understand that experience first, then profits later.
Remember to be patient guys. Trading is a skill honed over time. Do not rush into this. Take your time.. big deep breaths.
Learn and educate yourself. And speaking of that, guys, if you like the content I put out, please share it across your social media pages, give me a good review, give me a like on your Facebook, jump on and subscribe to Twitter and more importantly, let’s get you on TraderCobb.com and check out what’s out there guys.
Have a fantastic trading day. I hope this lesson once again has been of use to you and I’ll speak to you over again very soon. Bye for now.
This show is proudly sponsored by coinspot.com.au. With the largest range of cryptocurrencies anywhere in the Australian market. With an updated verification process, you can now be verified using only your driver’s license or passport within seconds.
You can instantly deposit funds and instantly start buying and selling your favorite cryptocurrencies in under five minutes. Coinspot are giving away $10 worth of free bitcoins for each verified user, once they make their first deposit.
Just go to coinspot.com.au/BTC123. Views of the advertiser, not TraderCobb or the audio presenter.
Categorised in: Free VideoTags: crypto portfolio management, how to make money in crypto, how to manage risk, money management