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/biz/ - Business & Finance

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23265612 No.23265612 [Reply] [Original]

explain risk management in one sentence or less

>> No.23265628

>>23265612
you do stuff to limit your risk

>> No.23265653
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23265653

>>23265628
what do you mean by risk?

>> No.23265661

>>23265612
don't be dumb

>> No.23265763

>>23265612
Make yourself lose less money by chosing a point to stop losing money

>> No.23265791

>>23265612
>>23265653
Not betting more money than you can comfortably lose

>> No.23265799

>>23265612
Risk and reward are inseparable, so find a way to expose yourself to reward without overexposing yourself to risk.

>> No.23265810

>>23265612
leave this board

>> No.23265873

How can you manage Risk if everything is random retards?

>> No.23266035

>>23265873
>>23265873
You use Stochastic Processes moron.

>> No.23266168

>>23265612
when doing leverage trading never risk more than 25% of your account in a trade

>> No.23266188

>>23265612
don't invest in something called luigi

>> No.23266217

>>23266035
This is just a scientific mumbo jumbo bullshit, you are not managing shit. Its just an idea, a illusion. Everything is random m8

>> No.23266231

don't lose money
/thread

>> No.23266254

>>23265612
Never go all in

>> No.23266256

>>23265612
It's literally all gambling except insider trading and pyramid schemes.

>> No.23266282

>>23265612
Hedge your shit

>> No.23266342

>>23265612
absolutely every action in life has cost and utility attached to it

>> No.23266423

>>23266217
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."

>> No.23266537

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.

>> No.23266538
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23266538

>>23265873
Random doesn't mean no information can be gleamed from it.

>> No.23266556

>>23266423
Hmmm maybe you are right... We cant be sure for now, we need to know more about the universe

>> No.23266571

>>23265612
You have some risk, and then you manage it to either take more or less depending on what you want to do.

>> No.23266754

>>23266537
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.

>> No.23266912

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

>> No.23266983

>>23265873
The markets aren’t random, if you think that you will never make it

>> No.23268164

Buy xrp

>> No.23268475

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

>> No.23268491

bet more

>> No.23268504

All your xyz blah blah
Is A CONCEPT
What A biz

>> No.23269925

>>23265612
diversify

>> No.23269963

>>23265612
Think about if it costs too much, then think harder.

>> No.23270100
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23270100

Avoid risk by going all in on Chainlink.

>> No.23270120
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23270120

>>23270100

or AVAX