✅ Risk Management in Trading: Essential Tips.

@mexcfutuer

🤔 Allocate Risk Management:

  🤔 Risk management is not one size fits all; it should be customized according to your risk appetite and portfolio size.

🤔 The Importance of Risk Management:

  🤔 Risk management is the most important element in trading, losing your account means not being able to make a profit.

🤔 Determine the percentage:

  🤔 Determine the percentage of your portfolio that you will allocate to trading, diversifying financial instruments and keeping a cash portion for emergencies.

🤔 Calculate the position size:

  🤔 Position size affects profit and loss, while leverage only determines the required margin.

🤔 Margin ratios per trade:

   ⭐️ Leverage 2x-10x: Use 5-7% per trade

   ⭐️ Leverage 10x-25x: Use 3-5% per trade

   ⭐️ Leverage 25x-100x: Use 2% per trade

   ⭐️ Leverage greater than 100x: Use 1% per trade

🛸 Higher leverage = Lower margin

🔥 Good luck to all.

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