Risk Management and Position Sizing:

Success in trading comes not only from making profit but also from controlling loss.

Risk management:

means how much loss you are willing to bear in each trade.

Position sizing:

means how much amount you should invest according to your capital so that if a loss occurs, it is not a large loss.

☆A simple rule: Only risk 1 to 2 percent of your total capital.

For example:

If you have 10,000 rupees, then take a risk of only 100 to 200 rupees in a trade.

For this, a stop loss is essential to prevent the loss from exceeding a limit.

Stop loss:

Why is it necessary?

Because not every trade is successful. But traders who control their risk always remain in the trade.