What is Risk Management?

how to make the most profits
the management of risks to protect one’s portfolio
price manipulation
price prediction

What is Risk?

the possibility of an investment to go the opposite of the expected return
the possibility of an investment to go towards the expected return
unseen market forces
an investment not moving in any direction

What is not part of a sound plan in managing risk?

Support and Resistance
Entry Point
Exit Point
Defined risk before buying

_______ is the amount allocated from your portfolio for an investment. It dictates how much risk and reward you are willing to take for a particular investment.

Capital Size
Capital Investment
Positioning
Position Size

When diversifying, it is recommended to “don’t put all your ____ in one basket”.

Coins
Capital
Eggs
Profit

Value-at-Risk (VaR) is a strategy mainly used by ___ in managing their risk.

Investors
Traders
Venture Capitalists
Value Hunters

Why do we need to manage risk?

Capital Preservation
Investment Edge
Loss Recovery
All of the above

In Loss Recovery, as your percentage of losses gets higher, the percentage needed to recover your losses _____.

gets higher
gets lower
remains the same
is irrelevant

A cryptocurrency you spent a lot of time researching on started showing red flags. You did not want to change your views on it. This is an example of the ____.

Confirmation Trap
Blindness Trap
Anchoring Trap
Relativity Trap

You see your friend going on a trip to Europe and start to compare your situation to theirs. You are falling for the _____.

Superiority Trap
Anchoring Trap
Relativity Trap
Blindness Trap

https://bitskwela.com/quiz/risk-management-in-trading-and-investing

Risk Management in Trading and Investing
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