Nowadays, the popularity of trading apps make trading easily reach by teenager, youngsters, or even student which they still spending pocket money given by their parents. Not to say they are prohibited to try, but at least need to have basic knowledge and know where the risk goes.
Not only youngsters, but adult also suffer by not having proper risk management. Liquidation cannot be reset like playing game. Maybe some are lucky enough to ride the bull from the #btc etf approval wave till now, maybe earned a bag of profit. But without proper management, the profit are easily taken back by the market.
So, what is management? And what knowledge we need to do trading? Unfortunately, there are no absolute answer. Maybe you can equip yourself with lot of trading skill, like graph reading, movement prediction, macro economic impact etc... at the end, it all depends on your experience to control your decision, and the unpredictable market. But what you can control is how much you can afford to lose.
As a trader, we always recommend others to set their stop loss, and take profit, but the fact is always other way round, people get liquidate by not having stop loss. Of course i get liquidate too, not only once, and didn't take profit before the market change... That's good lessons to learn. Always review what goes wrong, and why didn't realize before it going to the worst.
Of course, SL and TP , these are only very basic knowledge, but even professional traders cannot always implement on their trade. But what the pro can do is, they always can readjust their risk, offset the loss, thats what made them pro.
If you're new to trading, remember always ask yourself:
what is the amount that you afford to loss.Set your SL and TPReview your trade after closing.Don't feel unhappy if the coin pump after your TP. Don't chase high. It always happen, you need to be very rational. If really wanna chase it, then ask yourself no1. again.
Lastly, happy trading. Good luck and bless you.