#CardanoDebate Risk Management in Trading

Risk management is a vital component of successful trading. It involves protecting capital by controlling potential losses on each trade. Traders often use tools like stop-loss orders, position sizing, and risk-reward ratios to manage exposure. A common rule is to risk no more than 1–2% of the trading account per trade. This approach ensures that even a series of losses won't wipe out the account. Without proper risk management, even the best strategy can fail. Discipline in following risk rules helps traders stay in the game longer and build consistency. Ultimately, managing risk is more important than chasing profits.