riskmanagementmastery

DeFi Adventures & Risk Management: Level Up Your Crypto Game! 🚀

Hey Binance fam! 👋 Been diving deep into the world of DeFi lately, and wow, it's a wild ride! From yield farming to staking, the opportunities to grow your crypto are seriously exciting. But let's be real, with great rewards come great responsibilities (and risks!). 😉

I've learned a few key lessons that I wanted to share. First, DYOR is your BEST FRIEND. Seriously, don't FOMO into anything! Research the project, understand the smart contracts, and check the team's credentials. Transparency is key!

Second, diversify, diversify, diversify! Don't put all your eggs in one basket. Spread your investments across different protocols and assets to mitigate risk.

Third, understand impermanent loss. If you're providing liquidity, get familiar with how it works and the potential impact on your holdings.

Fourth, use reputable platforms and tools. Stick to well-established exchanges and use security best practices like 2FA.

Finally, and this is super important: start small and test the waters! Don't risk more than you can afford to lose.

DeFi is constantly evolving, and there's always something new to learn. What are your favorite DeFi strategies, and what risk management tips do you swear by? Let's share our knowledge and navigate this exciting space together! 👇 #DOGE原型柴犬KABOSU去世 #cryptouniverseofficial #Binance #RiskManagementMastery #DOGE冲冲冲 $BTC

95% of all traders fail” is the most commonly used trading related statistic around the internet. But no research paper exists that proves this number right. Research even suggests that the actual figure is much, much higher. In the following article we’ll show you 24 very surprising statistics economic scientists discovered by analyzing actual broker data and the performance of traders. Some explain very well why most traders lose money.

1. 80% of all day traders quit within the first two years.
2. Among all day traders, nearly 40% trade for only one month. Within three years, only 13% continue, and after five years, only 7% remain active.
3. Traders sell winning positions at a 50% higher rate than losing ones — about 60% of sales are winners, while 40% are losers.
4. The average individual investor underperforms the market index by about 1.5% per year, while active traders underperform by around 6.5% annually.
5. Only about 1% of day traders are able to consistently make net profits after fees, even though some with strong past performance continue to perform well.
6. Many traders continue trading even after up to 10 years of negative performance, showing that people often ignore signals of poor trading ability.
7. Profitable day traders make up only about 1.6% of traders each year, yet they account for roughly 12% of total day trading activity.
8. Profitable traders tend to increase their trading activity more than unprofitable traders.
9. Lower-income individuals tend to spend a higher portion of their income on lottery-style investments, and this increases as income declines.
10. Investors whose financial reality is far below their aspirations tend to hold riskier stocks in their portfolios.
11. Men trade more frequently than women, and unmarried men trade more than married men.
12. Poor, young urban men and certain minority groups are more likely to invest in lottery-type stocks.
13. Within every income group, gamblers tend to underperform compared to non-gamblers.
14. Investors commonly sell their winning investments too early while continuing to hold losing ones.
15. In Taiwan, trading activity dropped by about 25% when a national lottery was introduced in April 2002.
16. During periods of unusually large lottery jackpots, individual investor trading activity declines.
17. Investors are more likely to repurchase a stock they previously sold for a profit than one they sold at a loss.
18. An increase in search frequency for a specific asset often predicts higher returns over the following two weeks.
19. Individual investors tend to trade more actively after recent successful trades.
20. Research suggests traders generally do not learn effectively from trading — “trading to learn” is no more rational than gambling to learn.
21. The average day trader loses a significant amount after accounting for transaction costs, and in Taiwan, individual investor losses have been estimated at about 2% of GDP.
22. High-IQ traders tend to hold more mutual funds and a larger number of stocks, benefiting more from diversification; investors also often overweight stocks in the industry where they work.

𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧: 𝐖𝐡𝐲 𝐌𝐨𝐬𝐭 𝐓𝐫𝐚𝐝𝐞𝐫𝐬 𝐋𝐨𝐬𝐞 𝐌𝐨𝐧𝐞𝐲 𝐈𝐬 𝐍𝐨𝐭 𝐒𝐮𝐫𝐩𝐫𝐢𝐬𝐢𝐧𝐠 𝐀𝐧𝐲𝐦𝐨𝐫𝐞.

After going over these 24 statistics it’s very obvious to tell why traders fail. More often than not trading decisions are not based on sound research, tested trading methods or their trading journal, but on emotions, the need for entertainment and the hope to make a fortune in no time.

What traders always forget is that trading is a profession and requires skills that need to be developed over the years. Therefore, be mindful of your trading decisions and the view you have on trading. Don’t expect to be a millionaire by the end of the year, but keep in mind the possibilities trading online has.

We, at Tradeciety, built the Edgewonk trading journal which is a trading tool that allows traders to track and analyze their trades to improve their trading performance. A trading journal is a great way to become a professional trader and start taking trading seriously.
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