you have to understand the inherent risk in arbitrage trading, therefore these are my advice for:Managing risk doesn’t mean being afraid of losing money. The fear of loss can actually work against you and sabotage good trades. When trading it’s important to have a plan and set profit targets ahead of time. Before you pull the trigger on a trade you also want to assess how much you’re willing to lose if the market moves against you. These two elements combined are called risk to reward. Some traders use stop orders as a safety net to get out of a bad trade.