Why Risk Management Is Everything

It doesn’t matter how good your setup looks, if you risk too much, one bad trade can wipe your gains.

Start with a simple rule: never risk more than 1–2% of your account on a single trade. For small accounts, even less. This protects you from swings and keeps you in the game long enough to learn and grow.

Use stops and position sizing. A stop isn’t just a number; it’s insurance. Decide your entry, your target, and your maximum pain before hitting the button. That’s how professionals avoid emotional decisions.

Trading isn’t about winning every time, it’s about staying alive and letting your winners run. One strong win can cover several small losses if you manage risk properly.

Tip: Avoid changing your stop mid-trade unless the market gives a clear reason. Consistency beats chasing price every time.