Risk management is the foundation of successful trading. Even the most experienced traders cannot predict the market 100%, but they know how to control losses and maximize profits.
🔹 Key principles of risk management
✅ Diversification - distributing capital among different assets (Bitcoin, Ethereum, altcoins).
✅ Stop-losses and take-profits - automatic closing of trades upon reaching a certain level of loss or profit.
✅ Hedging - using futures and options to protect against sharp market movements.
✅ Position size - do not risk more than 1-2% of capital in a single trade.
✅ Emotional discipline - avoid impulsive decisions and stick to the strategy.
🔹 Paul Tudor Jones on risks
Paul Tudor Jones, one of the most successful traders, said:
"The best traders have no ego. You will have to swallow your pride and exit losses."
This principle perfectly reflects the essence of risk management: do not hold onto losing positions due to emotions, but make quick decisions and preserve capital.
Proper risk management is not just about protecting against losses, but also a way to earn steadily.
