Risk Management:
Protecting Capital: Proper risk management strategies, such as setting stop-loss orders and determining appropriate position sizes, are fundamental in safeguarding your investments.
Preserving Gains: Effective risk management not only protects your capital but also ensures that your profits are preserved and not eroded by unexpected market movements.
Patience: Waiting for the Right Opportunities: Successful trading often requires patience to wait for optimal entry and exit points. Impatience can lead to chasing trades that do not meet your criteria, resulting in unnecessary losses.
Long-Term Perspective: Patience allows traders to maintain a long-term perspective, focusing on sustainable growth rather than short-term gains.
This is a very important and vital factor to consider while trading, you don't get to be profitable without having a good risk management and money management strategy, this also helps to keep your emotions in check because if you have your emotions in check, you will be able to have your trade under control such that you will be able to meet up with every trading conditions and become profitable but if your emotions are u stable, even your strategies will not be sheared to because the discipline at that time will not be there.