The art of trading lies between uncertainty and risk management.
In the world of financial markets, whether you are a beginner trader or a professional, there is a fixed truth that cannot be escaped (uncertainty). Markets do not move along a specific path or guaranteed 100% predictions.
Every (analysis) or (prediction) is just a probability that may be right or wrong, no matter how accurate or deep the person is in reading the data and indicators. But the strange paradox is that what keeps the trader standing in this battle is not his ability to predict, but rather to manage risks.
((Uncertainty is the eternal law of markets))
Markets move based on millions of factors: economic data, political statements, geopolitical fluctuations, and even the emotions of the traders themselves.
All these factors cannot be controlled or predicted with absolute precision by anyone, so trading is not about being right all the time, but about accepting that you may be wrong and that mistakes are part of the game.
The smart trader does not seek certainty, but looks for the best opportunities based on available data and prepares for the possibility that things may go against their expectations.
This is what distinguishes the professional from the amateur.
The first knows he may lose, but he ensures that his loss is under control.
Therefore, risk management is a survival weapon.
If uncertainty is the disease, then risk management is the cure.
How?
Defining the risk percentage for each trade.
Never risk more than you can afford to lose.
A famous rule says do not risk more than 1-2% of your capital on a single trade.
This means that even if you lose several consecutive trades, you will not exit the market and you will still have the opportunity to recover your losses.
Stop Loss.
Setting a stop loss is not a sign of weakness; it is proof that you respect the market and accept that you may be wrong. The stop loss is the lifebuoy that prevents you from drowning in a whirlpool of false hope and clinging to a losing trade.
Controlling emotions.
The market does not care about your feelings, whether you are angry, greedy, or scared; emotional decisions usually lead to losses. Adhering to the trading plan and respecting the risk rules is what keeps you balanced.
Gradually moving the stop loss.
Once the trade starts moving in your favor, you can move the stop loss to the entry point or to profit, which protects your gains and reduces risks.
This smart step means that even if the market suddenly reverses its direction, you will not lose more than you planned.
Regular performance analysis.
Do not limit your evaluation of trade results based on profit or loss only, but analyze how you managed your risks. Did you adhere to the stop loss?!
Did you risk a reasonable amount? Did you stick to your plan? These questions are more important than just calculating profits, because the market relies on commitment and constant discipline.
Profit is the child of risk management.
The simple truth is that staying in the market for a long time is the key to success; you cannot win if you have lost all your capital due to one reckless trade.. thus, a successful trader knows that the primary goal is not immediate profit but sustainability.
Because true profit is the cumulative result of wise decisions and strict risk management.
Remember, the market does not care whether you are right; it cares whether you know how to protect yourself when you are wrong.
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