Risk Management: Your Edge Against Uncertainty

Most traders focus on finding the perfect strategy — but even the best strategy will fail without proper risk management. Managing your capital is the only way to survive long-term.

The golden rule? Never risk more than 1–2% of your trading capital on a single trade. Use stop losses on every position. Calculate your risk-to-reward ratio before entering, and only take trades where the potential reward is at least double your risk (minimum 1:2 RR).

Emotional trading — revenge trades, over-leveraging, removing stops — destroys accounts. Risk management isn’t just about preserving capital. It’s about building trust in your process and eliminating emotional instability.

Key Takeaway: Trading without risk rules is gambling. Control your downside, and the upside takes care of itself.