WHAT IS RISK MANAGEMENT
Risk management in forex trading refers to the strategies and techniques used to protect your trading capital from large losses. It's one of the most important aspects of becoming a successful and consistent trader. Here are key elements of risk management:
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1. Use a Stop Loss (SL)
Set a stop loss for every trade to automatically close a position at a certain loss level. This limits how much you can lose on a single trade.
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2. Use a Take Profit (TP)
This helps you secure profits by automatically closing a trade when your target is hit. It prevents you from being greedy and losing gains.
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3. Risk Only a Small Percentage of Capital per Trade
A common rule is to risk 1–3% of your total capital per trade. For example, with a $100 account, you should not risk more than $1–$3 on any single trade.
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4. Calculate Position Size
Use position size calculators or formulas to make sure your trade size matches your risk level, stop loss, and account size.
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5. Avoid Overleveraging
High leverage can increase your profit but also increases risk. Use only what you can manage—don’t go too high with lot sizes.
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6. Diversify Your Trades
Don’t put all your money into one pair or one type of asset. Spread your risk across multiple trades if possible.
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7. Keep Emotions in Check
Don’t revenge trade or overtrade. Stick to your plan and avoid emotional decisions.
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8. Maintain a Trading Journal
Track every trade: entry, exit, SL, TP, lot size, and results. Review your performance and adjust based on what works. #BinanceAlphaAlert #BitcoinDunyamiz
