Day 4 – The Lesson Most Traders Ignore (But Shouldn’t)
When people start trading, they always ask —
“How much profit can I make?”
But smart traders ask —
“How much can I lose… and still stay in the game?”
That’s called Risk Management. And it’s what separates pros from amateurs.
So what is it?
Risk management is simply about protecting your capital.
Not every trade will win — but how much you lose is always in your control.
Here’s how to manage risk like a pro:
1️⃣ Never risk everything on one trade
Only risk 1–2% of your total capital per trade.
It sounds boring, but it saves you from blowing your account.
2️⃣ Always use a Stop-Loss (SL)
No SL = disaster waiting to happen.
SL protects your capital when the trade goes wrong.
3️⃣ Think in risk-to-reward
If you’re risking ₹1,000, aim to make ₹2,000 or more.
That way, even if you lose more trades than you win — you still grow.
4️⃣ Don’t overtrade
The goal is not to be in every move.
Wait. Filter. Strike only when setup is clear.
Real Talk:
You can’t control the market.
But you can control how much you risk.
Most traders don’t fail because of bad setups —
They fail because of bad risk habits.
Q for You:
Do you use a stop-loss and plan your risk before entering a trade?
Be honest — reply “Yes” or “No” 👇
