Post
Topic
Board Trading Discussion
Re: Risk management
by
Lida93
on 21/06/2023, 10:18:12 UTC
When trading there are rules to observe in other to protect your margin, it's more like if you can't make more money, don't lose the one you have,
 That's where risk management comes in handy.
    The strategies are;


_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.
Focusing on both risk and reward would be more safer as you would have to weigh your reward against the risk am to incur. Focusing only on the risk could make you lose sight of the size of the reward you're taking the risk for, thereby  taking risk that doesn't match your potential reward.
Quote

_ Reacting to risk, use stop loss and always take profit.
For a trader with a little amount setting up a SL and TP is very sacrosanct in managing and minimizing your supposed loss that could clean up your account.