Risk Management โ The Most Overlooked Trading Skill
You can have the best strategy, but without risk management, you will still lose.
๐น Position Sizing Rule:
Risk only 1โ2% of your account per trade.
๐น Always Use a Stop-Loss:
A stop-loss protects capital and keeps you consistent.
๐น Focus on R:R (Risk-to-Reward):
โข Minimum: 1:2
โข Ideal: 1:3
โข High-quality setup: 1:5+
๐น Why It Works:
A trader with strong RR can stay profitable even with a 40โ50% win rate.
๐ก Pro Tip:
Trading is not about winning every trade โ
itโs about managing your losses and maximizing your winners.
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