Why Risk Management is Everything
You can be right 70% of the time and still lose money without proper risk management.
Core Rules
1. Never Risk More Than 1%
Protect your capital first.
2. Use Stop Loss ALWAYS
No stop loss = account killer
3. Risk-to-Reward Ratio
Aim for at least:
👉 1:2 or 1:3
4. Avoid Overtrading
More trades ≠ more profit
5. Protect Your Profits
When in profit:
- Move stop loss to break-even
- Secure gains
The 90% Rule
👉 90% of traders fail because they ignore risk management.
Mindset Shift
Stop thinking:
“How much can I make?”
Start thinking:
“How much can I protect?”
Conclusion
Risk management is what separates gamblers from professional traders.