Always have a plan of entry and exit - Risk Control
Hello Community, everyone have a good start to the week, make it very productive.
Today I want to talk about a recent experience, and one that left me with good lessons. Starting from the current reality, in good measure we are all in search of options to produce money from business, to establish different sources of income, with the intention of stabilizing our economy and improve our daily lives, do you agree or is it just me who is walking on that?
In every venture we do we must always keep in mind that just as we can have big or small profits, we can also have losses, because risks are part of everything we do in our lives and business, ventures are no exception.
I recently had an experience that was highly risky, which led me to define certain expectations about what I do and what I will do. The large profit possibilities often lead us to become blind and omit the part of the risks that can lead us to large losses very quickly.
That's why there's more room for the idea that we MUST NOT RISK WHAT WE ARE NOT ABLE TO LOSE.
We must adapt the management of our risk control depending on the business we are doing.
It's not the same to run a traditional business, for example a pharmacy or a bakery, that might be starting with few resources and in general most of the business owners reinvest permanently during the first months or years before they can make any kind of profit, in theory because those businesses have a certain degree of stability in the traditional economy. But when we talk about crypto-currencies, digital investments, the best thing to do is to establish a technique, a scheme that we work on and not get out of it, because it can lead to sudden losses.
Risk control is a phrase that I am keeping more and more in mind as I get into investments in the world of cryptomonics, given that volatility is very high and can be earned very quickly, but can also be lost in the same way.
Having exit strategies is as important as having entry strategies
In any part of the world, in any commercial activity in which we are involved, we must think and rethink what we will do. To have entry and exit strategies, I do not only refer to the trading of cryptosystems, but to any activity.
To see our life as far as money management is concerned as a big chess board, -I hope you all have played and know what I mean-, in which we have to be very STRATEGIC, to try to foresee what can come if we make one move or another, but we know we can't always get it right, however it's worth trying.
I'll say goodbye for now, hoping you enjoyed this reading.
I'd like to know: **Have you ventured into high-risk businesses? How do you handle them or would you rather stay out of them?
I authorize the use of this banner to everyone who wants to do it.
 |  |  |
|---|
This post has been manually curated by @sayee from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share 80 % of the curation rewards with the delegators.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
Read our latest announcement post to get more information.
Please contribute to the community by upvoting this comment and posts made by @indiaunited.
Thank you for support.
Gracias @ladario por el apoyo.
Congratulations @josevas217! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board And compare to others on the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPDo not miss the last post from @hivebuzz:
Very pertinent. Basically, calculated risk, control frenzy movement, experiment with small amounts and learn from your mistakes.
Controlling FOMO emotions very important. It's almost like crypto volatity. See as a novice trader, atleast I FOMOED, I did not now when to sell and buy and all...later post a lot of loss and falls... I have become like a large cap stable coin, not FOMOIng with price rise...
I study prices, price action and aim to trade the parabolic run , then sell and book profits. Doing this a number of times, gives you confidence and you learn to time things better...
Right now, its easy to make profits, because its bull run and many cryptos are yet to reach their ultimate ATH... so just buy at a price crypto is stable now(support levels) and sell when it reaches resistance.
For DEFI coins, I brought one LEND/AAve ... I have to you know make plans to see when I can sell and all.
Please buy coins if you can when prices are low, and on projects that have got sound fundamentals... else your out of the game.
It takes lot of patience...but well, returns are good and this is the happening hot trend in the world of fiance and technology and the into place to be in now!!
In return you get a lot of knowledge and growth also, almost as fast as crypto growth, so its worth it, it will benefit you in the upcoming future, giving you an edge against those who don't know or ventured into this space.
At the right time, when I get enough money, I am planning to take a crypto course and then get certified and become a professional crypto journalist.
I have to work on Technical analysis bit a lot and see...
Technical analysis requires tremendous patience, that's right, but I think it's something worthwhile, I particularly like it.
I think, in good measure, that it can generate good dividends if you manage to create a good technique to do it. Especially now that the world of cryptocurrencies is on the rise, there are still no signs of any correction. NOT soon. At least I don't expect it yet.
I hope you get certified, I do. Good luck with that.
Thank you for your comment @mintymile
and there's been a correction!!! ...I guess that's healthy, you spoke too soon about there being no signs of correction.
Yup once I get enough money to afford a course will do, that's possible if I actually make nice profits in crypto ironically, I will wait and see.
Trading is always walking a fine line between risk and reward. The comparison with chess is tricky, because chess is a Perfect Information game and trading is not (it is actually considered an Imperfect Information game, see for instance https://policonomics.com/complete-incomplete-information/ , https://arxiv.org/pdf/0809.0448 and https://www.elitetrader.com/et/threads/is-trading-a-perfect-or-imperfect-information-game.217365/).
That said, it is fundamental to have an entry and an exit strategy - especially in nondeterministic conditions - and a solid execution plan that is not influenced by irrational parameters such as FOMO and prejudices.
Hello @lucabarbera
It is an interesting link that you have left me, certainly, there is information that we do not know completely as to what economy can affect, or also, we handle information that we can consider true and in the end it is not.
Thanks for such a good comment, I think I will write about it.
A good point about the chess/trading comparison. As a chess player, I am aware that even though it is a perfect information game, I do not always "see" all the information that is there, and often make careless mistakes or react psychologically rather than playing the board. I also attempt to get my opponent to make those kind of errors too! The lesson is that if we make so many mistakes in a game like chess, we certainly need to work hard to protect ourselves against risk, and against ourselves, in imperfect information games such as investing.
Without a doubt, we must be careful not only of the factors that we do not control, but of those factors that we can control, which are intimately related to our psychology
Hello @josevas217 I totally agree with you, we must always take into account the risks and protect our capital because this world of cryptomonies is very volatile and also today there are many people who just want to keep your money. It is not bad to take risks, but always risk what we can lose.
Yes, keeping the capital safe, as soon as possible, is crucial in this, but, we do not always comply with what is planned, and there is a big problem there.
Thank you for comment
One of the failures we commit is not having good risk management, not to mention that many people do not know how to land the profits which leads to a market crash, theft or some calamity stealing their capital. I think it is essential to manage risk, have an exit plan and a plan to materialize the profits to a physical asset.
If @jobs of the century, recently happened to me, I had a good profit margin and did not withdraw enough when I should, but, I was left with good experience. There is no other way but to learn. It is crucial to get hold of a technique, and to respect it.
Thank you for commenting.
One of the failures we commit is not having good risk management, not to mention that many people do not know how to land the profits which leads to a market crash, theft or some calamity stealing their capital. I think it is essential to manage risk, have an exit plan and a plan to materialize the profits to a physical asset.
It's always like that... Bigger gains, bigger risks... lower gain, lower risk...
You are right about entry and EXIT strategies... Usually, people do forget about the second one... and then they get burnt... I have done that in the past, so guilty! :)
Thank you for your comment @ph1102
Actually, in a way I can say that we have all made the mistake of not leaving on time, having already good earnings, but it is part of the learning process.
Some things I do to manage risk in my crypto investments are (1) diversfy across several arbitrage programs, (2) recoup my initial investment as soon as possible, (3) regularly withdraw profits.
Hello @hirohurl
That's a good plan, actually the basic thing one should learn is how to recover capital. Then, it is logical to withdraw profits, perhaps not all of them, so that the profits continue to multiply, but it must be done.
Recently I made a mistake in that aspect, in not withdrawing, and it didn't go so well. But, I learned. You have to create your technique and respect it.
Thank you for commenting.
Yes, I completely understand this. As a part time trader, we are always talking about minimizing your risk factor as much as possible. Of course, there's also risk with the stock market, crypto currency, etc. But when you have a plan & stick to that plan for the most part, that risk won't hurt as much.
When you said don't risk what you can't afford to lose, this is so on point. A lot of people don't grasp that & I have seen traders put in their whole life savings only to lose it all & blow up their account. Fortunately, I never did this lol.
I really enjoyed this post & resonated with it a lot. Thank you for sharing this wisdom with us :)
Hello @pixiepost
Losing all of your life's savings in one moment must be a very traumatic experience. But it's crazy to do it, in the end, I think that in all types of commerce there are risks, but in the digital world they are increased. So we have to increase measures to avoid losses. One mistake can be fatal in economic terms. Not respecting the plan, getting out of it, can also be a big problem.
It is always best to play to win, obviously, but the possibilities of losing are always there, it is logical, that is why I do not think it is logical to bet everything in a transaction, but a percentage of the capital, some say no more than 10%, others say no more than 20%. Well, that is also within the risk control. Thank you very much for your comment.
Hello @josevas217! Thanks for your post. I agree with you! It doesn't matter what are you doing, do you work for someone or are you self-employed, there are always risks. We can't eliminate all risks but we can reduce them by doing a proper analysis.
That's a good point @irisworld
The risk will always be in what we do, there is no doubt about that. But we must always have different plans, just in case.
I don't do trading to be honest, but I do invest a lot of time and some money into Hive and CTP not anything I can't afford to lose, and even if some part of it will not go well the risk that all parts will become a total loss is very low, the blockchain part is earning me crypto and also builds my brand for the affiliate marketing part of my CTPtalk journey, and there I build my email list first which I keep even if all other parts fall apart, the list is then what is used to promote my blog and vlog on Hive and CTPtalk and also affiliate products and services, so there are really no single point of failure for all this, if one thing does fall apart all other parts just keep going, and most of this can be easily replaced if it fails, the only thing that is not easy to replace is the Hive blockchain itself, that is where I stand.
Hello friend @flaxz, I see that the risk control in your case is very good.
And you have mentioned several interesting points, so I can sense that you are quite organized, and I think that's great. I congratulate you on that.
It's true, you have to diversify, and look for ways to make everything related, in a certain way, but not necessarily that all of them have to fail if one does.
Thanks, and if you want to know more about CTPtalk and how it relates to affiliate marketing, just ask, I do get quite a few more visitors to my blog and vlog just using my email list each day.
Hello friend, yes, I would like to know what it is about, I have been reading some information, but I am not very clear. But I see you have good movement, and that's great.
Thanks, so first of all you have CTPtalk and Hive where you make blogs and videos, which builds your brand and you get paid Hive and CTP tokens for it, now apart from staking your CTP tokens you can also spend them with quite a lot of merchants who runs affiliate programs through the Firepay integration developed by ClickTrackProfit, which lets you pay directly to the merchant using Hive keychain without any middleman, and also earn commissions from sales that you generate for these affiliate programs.
Secondly ClickTrackProfit is a gamified affiliate marketing training platform that shows you how to build YOUR business by building your email list, and then through that promote your blog on Hive and CTPtalk, and also to promote affiliate products and services, so you get this synergy where your list builds you brand and your brand builds your list, and by earning on the blockchain you don't have to spend money out of pocket to start.
That is the big deal with CTP and why there is a growing community around it, I hope this helps.
!tip
👍
Hi @flaxz
Sorry for the late response.
But, for some reason I hadn't seen the notice, however, here I am.
I am impressed with what you can create from CTP, it is a very interesting and creative project.
I will review it, and see better the options, everything online I like, and in these conditions I think it lends itself to achieve great things.
Thank you very much for this information.
Thanks a lot, and I hope you will enjoy it.👍🙏
🎁 Hi @josevas217! You have received 0.1 HIVE tip from @flaxz!
@flaxz wrote lately about: Sunny Thursday And A Long Walk Along The Water - Actifit: August 27, 2020 Feel free to follow @flaxz if you like it :)
Sending tips with @tipU - how to guide.
This is a great post about risk and life good points
Thank you for commenting, I believe that at the end of life there are always implicit and explicit risks, but in spite of this, we must continue to enjoy everything. In trading and commerce it is the same, at least for me.
Have taken some risks up through the years, and learned from that. Always be critical and do some research about anything, and if something sounds too good to be true it usually is. Would say it is better to go for the low risk, which may be more for the long term.
That's great, taking risks. No doubt the low-risk ones will have less profit, and are more to look at in the long run. I totally agree, but one may see a good option and rush to take it.
It is a hard lesson to learn and I have experience with it. Many years ago my husband and I used the equity in our home to buy into an unproven start up business. We did all the due diligence that was available to us at the time. Because of that and some job layoffs we ended up losing our house. That isn't the only risk we have taken. We just get more careful after each time.
Hi @lisamgentile1961
Now that was an intense experience, wow. A big risk, a big loss.
I hope you were able to recover from it. From such difficult situations we always have a great learning curve, obviously. Thank you for sharing your experience, I'm sure you've done better since then.
Hello, @josevas217! Thank you! We are in a much better place now! My husband is retired and I work for myself online! Have a great day! 😀
Made in Canva
@lisamgentile1961
___
You talk about some good points. It is very wise to not invest more then you can afford to lose. And as important as a entrance strategy is you always want an exit strategy so you don't end up losing your shirt. Great information.
If, within the plans we must always contemplate in the future the possible losses and how to avoid them, also in this world of the crypto currencies it is good to know that there are always corrections of the prices, that only mean a little backward movement before continuing to rise, to have that clear is important not to fall in chaos.
Nice and well thought out post Jose`@josevas217. Honestly I do not feel the need to take risk. I worked long and hard all of my life and have a couple of retirement incomes plus I am still working offline for my son's Wolff Contracting business as the Lead Truck Driver. When I am online CTP is one of my highest priorities and it has paid me well over the years (Total Paid: $2324.49) It is good that you do not risk more than you can afford. Wishing you the greatest success. Oh! And BTW ... I am following you now. :)
I celebrate your retirement income my friend @, I think many would like that, it's great to have something to keep you calm, I congratulate you, that's the product of your effort. And that you can still continue working and with your son, much better, doubly lucky.
I can say that he is a successful man, so I'm sure he fought hard for that.
Very good income through CTP, that's incredible, but it's very good, I don't know much about it, but I think I should investigate.
Thank you very much for the support @wolffden
You make some very good points to remember.
I used to be a gambler and like any habit it can be easy to fall back into those old habits. The most I do now is play the lottery scratch off games. But even with those you have to know when to stop.
Hi @successchar
The lottery, really, is a kind of permanent hope of being able to win, although the chances are very slim to win. But, I see that many do it, I don't criticize it, everyone gets their own ways to entertain themselves.
It's good that you've managed to get away from the game, it's not always won and often brings some problems.
Thank you very much for your comment
When we get returns, usually a higher return, we overlook the risk that we are taking. Although sometimes we see things are not going well, still we keep silent. Eventually, we end up losing the invested amount. Thank you @josevas217 for sharing this. I'd also like to thank @russellstockley for featuring this awesome post.
Hi @rezoanulvibes
This is an important fact, high profits make you blind a little, many times they make you look as if you were only going to win permanently.
Quite right, thanks for your valuable feedback.
I will need to agree with @ph1102, bigger risks have bigger gains. For me, it's a matter of what I would be willing to invest or whether I could afford to either win or lose. I just wish our government had a better exit strategy into this lockdown thing. As it is, the average person gets to suffer. Boohoo!
Good post 😉👍🏼
Posted using Dapplr
That's an important thing to be clear about, "how much you're willing to lose. Because even psychologically it allows us to be more calm and to be able to think better.
And the governments, well, that's another thing, these people don't care about anything but numbers that they say to how many *have helped, if in a crisis situation, with their populist policies they give away some bags of food, then they can say that they gave away some bags of food and those numbers can be put, through the media handling like some heroes.
Thank you for your comment @iamraincristal