RISK MANAGEMENT


Whatever your chosen asset or timeframe, Stonksy is a proven indicator that helps traders around the world to analyse the markets and take advantage of key opportunities in order to gain the edge they deserve. 

Alongside providing the tools to help you analyse and anticipate market moves, we encourage education, discipline and risk management. When trading, your capital is always at risk, and cryptocurrency in particular is extremely volatile; significant increases and decreases in value are commonplace. Cryptoassets also tend to be unregulated and are not protected by financial compensation schemes. Despite rigorous backtesting, past performance doesn’t guarantee future performance and it is important that you take steps in order to try and protect your capital.

What Can I Do?

  • Have a long term strategy - thinking about your long term trading plans, what risk- reward ratio do you need to achieve to be profitable over time?

  • Have a short term plan - before you enter a position, try to set parameters. Ask yourself, what are your profit targets, and at what point will your set up be invalidated? Consider using a stoploss to limit your exposure in the event a trade goes against you.

  • Position size - always consider your position size and don’t over expose yourself. Based on your plan and invalidation, it is suggested that you risk no more than 1% of your trading capital on any one trade, although this should always be considered in the context of your overall strategy, account size and risk appetite.

Where Can I Learn More?

This is just a very brief overview of some of the things you should be looking at before deciding whether or not to risk your capital. To learn more we suggest you check out the Crypto Saving Expert courses, which can be found here: https://cryptosavingexpert.com/

In particular, you may benefit from the following:

And remember…taxes might be due on any profits!