Risk Management Techniques for Active Traders

Risk Management Techniques for Active Traders

July 5, 2019 Off By admin-445

These days trading is one of the most profitable ways of making a fortune on the internet. However, even some of the most experienced traders lose money because they forget about risk management techniques. Here are the most beneficial tips which will help even if you have been in this score of work for a long period of time.


If traders do not want losing a huge sum of money, they should remember some essential recommendations and always follow them. The most significant tips are in the list above.

  • Never invest more than 50% of your capital in a single project. You ought to remember about diversification of your currency because even the most successful business can turn out to be a company which does not bring you any coins. Some experts even say: “Traders should invest less than 5-30% in an organization.”
  • Do not forget about a Stop Loss. If losing all your wealth one day is not your goal, you need to always set a Stop Loss point. So, you will not be able to increase your rate even if you want. While setting this point you need to evaluate technical factors.


A significant thing a trader should remember to make a fortune is to use some risk management techniques. They’re diversified in 3 types:

  • Conservative. The method is for people who are careful because it’s easier to save money with it. Transaction risk is from 0.5 to 1%. An income per year is about 30-60%.
  • Optimal. Such a technique works for people who don’t have a huge deposit but are eager to increase gambles. Transaction risk’ll be about 2 or 3%. Traders can earn 60-120% per year.
  • Aggressive. This strategy is great for those who want to earn an enormous sum. However, one can easily lose everything in a raw with such a method. Transaction risk’s 5-7%. Your minimum salary per year will be 200%.

Even active traders cannot decide which of these techniques they have to choose due to the fact that everybody has a purpose to earn a huge amount of money and not losing anything. However, such a goal is impossible to achieve. That’s why your choice must depend on:

  • How often you gamble;
  • How much money you have in the beginning;
  • A percentage of lucrative deals.

In conclusion, it’s essential to mention that although trading is getting popular worldwide, you should understand that there’re always lots of dangers. This’s why it’s important to follow rules and to choose strategies which will help you become successful.