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⚠️ Potential risk in trading: How to anticipate problems before they occur?
🔍 5 Hidden Risks That Could Destroy Your Portfolio (And How to Avoid Them)
1️⃣ Liquidity Risk
· Description: Unable to sell when you want due to low trading volume
· Indicators:
· Daily trading volume < $10 million for the currency
· Large price difference between supply and demand (Wide Spread)
· Prevention:
· Trade only major currencies (BTC, ETH, BNB)
· Avoid small coins with low volume
2️⃣ Gap Risk
· Description: Price gap between market close and reopening
· Example:
· Price close: $50,000
· Reopening: $45,000 (10% loss immediately)
· Prevention:
· Do not leave open positions overnight during important news times
· Use Stop-Loss Limits instead of Market Orders
3️⃣ Execution Risk
· Description: Not executing your order at the desired price
· Scenario:
· You want to sell at $100... but execution happens at $95
· Prevention:
· Use Limit Orders instead of Market
· Avoid trading during high volatility events
4️⃣ Jump Risk
· Description: Sudden and sharp movements against your position
· Reason:
· Unexpected news
· Statements from officials
· Breach of a platform or project
· Prevention:
· Diversify your portfolio (do not put all your eggs in one basket)
· Reduce position size during important events
5️⃣ Model Risk
· Description: Relying on an old strategy or indicator
· Warning:
· What worked in 2020 may not work in 2024
· Markets are always evolving
· Prevention:
· Update strategies every 6 months
· Test new ideas on a demo account first
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📊 How to detect risk before it happens?
1️⃣ Monitor indicators:
· Fear & Greed Index
· Market volatility (VIX for Crypto)
· Volume Analysis
2️⃣ Follow the news:
· Economic Calendar
· Trusted accounts on Twitter
· Emergency channels on Telegram
3️⃣ Precise technical analysis:
· Support and resistance levels
· Warning candle patterns (Doji, Shooting Star)
· RSI indicator for overbought/sold conditions
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🛡️ Emergency plan (What to do when danger appears?)
1. Reduce Position Size
2. Move SL to Break-Even
3. Take Partial Profits
4. Exit Entire Position
---🌌 In conclusion:
"A professional trader does not wait for risk... but builds a wall before the storm!" 🛡️
#Risk_Management #Safe_Trading #Potential_Risk