𝗧𝗵𝗲 𝗨𝗻𝗯𝗿𝗲𝗮𝗸𝗮𝗯𝗹𝗲 𝗥𝘂𝗹𝗲 𝗼𝗳 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁
No trading strategy can survive without one foundational element: strict risk management. The single most important goal for any trader is to preserve capital, because you need money to make money. This means never risking more than a small percentage of your account on any single trade, typically 1-2%.
A high-risk, high-reward gamble might seem tempting, but one significant loss can destroy weeks or months of careful gains. By controlling your position size and using stop-loss orders religiously, you ensure that no single trade can ever critically wound your portfolio.
Profitability isn't about winning every time; it's about losing small when you're wrong and winning big when you're right. Make protecting your capital your highest priority, and consistent returns will be the natural result of your prudence.
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