Risk Management Strategies

Risk management is crucial for long-term success. No matter how accurate your analysis, losses are inevitable. The key is to control them.

Golden rules:

• Only risk 1-2% per trade: Don’t bet everything on one outcome.
• Use stop-loss orders: Limit downside losses automatically.
• Diversify: Don’t place all your capital in one asset.
• Position Sizing: Calculate the right amount to trade based on account size and risk tolerance.
• Keep a Trading Journal: Record every trade, reason, outcome, and lessons.

Trading is not about winning every time—it’s about managing risk and staying consistent.