successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable
i want to know what methods/rules are there to minimise risks
I am currently trying out my new account, it works quite well. It is a 2% and 6% rule, I have read this rule of a legendary trader Alexander Elder. He is one of my inspirations in trading and his method is very effective. But to accomplish this method, we need to have a strong mentality and perseverance.
2% means that in 1 time of your trade, you must only lose no more than 2% of your total account. and if you're constantly losing money and find your account has dropped 6%, it's time to take a break and review your trading method.