How do you lower your trading risk?

[Oscar_0]

Personally, I try to keep my trading leverage down and trade in low spread-consuming pairs. Is there any other way to reduce trading risk?

 

[Gracekb]

don't invest in risky coins

 

[Hudson_]

Personally, I try to keep my trading leverage down and trade in low spread-consuming pairs. Is there any other way to reduce trading risk?

I use micro account and you know that this account is risk free in all cases.

 

[stoch]

Personally, I try to keep my trading leverage down and trade in low spread-consuming pairs. Is there any other way to reduce trading risk?

Yes, via diversification or hedging. Basically you have to choose assets which don't move in tandem, so when drawdown in one of them occurs you can expect that total loss won't be magnified due to drawdown of the second. With hedging you can cover particular risk like fix the price of the asset in future via futures or pay insurance to protect position from adverse movements (using option).

 

[siyalikashyap]

Diversification , using SL, Position Sizing , Use Technical and Fundamental Analysis , Control emotional trading.

 

[FXGLORY]

Lowering trading risk involves a combination of elements such as expanding your knowledge, controlling emotions, and using appropriate risk management measures. Good luck with your trades!


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[stoch]

Personally, I try to keep my trading leverage down and trade in low spread-consuming pairs. Is there any other way to reduce trading risk?

Mitigating risk typically involves a trade-off with potential rewards (expected profit), with diversification being one of the few exceptions. Diversification can help spread risk by including assets that are negatively correlated, thus reducing the overall risk in a portfolio without sacrificing potential returns.

 

[Richard0]

Using small leverage in trading and not trading merals or commodities.

 

[Richard0]

don't invest in risky coins

Are you referring to cryptocurrencies?

 

[stoch]

Strictly speaking, risk can be reduced only via hedging (using options, futures or other derivatives) or via diversification. Other methods suggested here relate to money management which reduce both risk and reward.