Explain risk management in one sentence or less

explain risk management in one sentence or less

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you do stuff to limit your risk

what do you mean by risk?

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don't be dumb

Make yourself lose less money by chosing a point to stop losing money

Not betting more money than you can comfortably lose

Risk and reward are inseparable, so find a way to expose yourself to reward without overexposing yourself to risk.

leave this board

How can you manage Risk if everything is random retards?

You use Stochastic Processes moron.

when doing leverage trading never risk more than 25% of your account in a trade

don't invest in something called luigi

This is just a scientific mumbo jumbo bullshit, you are not managing shit. Its just an idea, a illusion. Everything is random m8

don't lose money
/thread

Never go all in

It's literally all gambling except insider trading and pyramid schemes.

Hedge your shit

absolutely every action in life has cost and utility attached to it

The idea that every is random is actually the illusion my guy, most of these systems have complex internal logics and mathematical formulations that help you quantify risks and then mitigate the potential for that systemic or potential risk to become real. It's not a guarantee, but it's a much better, safer, and reliable bet than just assuming it's impossible to quantifying statements about "random events."

Kelly criterion.

Super basic but if you use it you won't go bust and time in the market>timing the market so you catch all the gains.

Random doesn't mean no information can be gleamed from it.

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Hmmm maybe you are right... We cant be sure for now, we need to know more about the universe

You have some risk, and then you manage it to either take more or less depending on what you want to do.

Well said. This is the correct approach to position sizing. Even though its hard to size correctly in practice, you can use a Simple Multinomial Kelly to quantify your expected scenarios into a position size.

Try to make +ev bets and leave a large buffer of liquid cash for losing streaks. Play poker to train your intuition.

The markets aren’t random, if you think that you will never make it

Buy xrp

All your "xyz" blah blah
Is A CONCEPT
What A biz

bet more

All your xyz blah blah
Is A CONCEPT
What A biz

diversify