This picture is your new risk management standard. It's all here: what is risk, how to calculate it and how to correctly take positions for profit.

- Why RM is important:

If you don't know how much you are ready to lose, the market can make you nervous more than once. Because even a small movement not in your favor can bring big losses. Without strict adherence to risk, you can easily lose most of your deposit and succumb to emotions, which will lead to even more wrong decisions.

- What will risk management give you:

If you have calculated the risk in advance, then you always know how much you can lose and clearly understand when to enter a trade and when to exit. This will help you save your deposit and earn even if half of the trades are closed by a stop. And it will also help you avoid unnecessary stress, negative emotions and wrong decisions.

- What happens if you do not follow the rules:

By violating or ignoring the risk management rules, you lose profit and face liquidations. It slows you down and you can't reason properly because of emotions. Because of this, you don't grow from year to year and you miss good trading cycles.