#TradingMistakes101 When you decide to engage in trading, it is important to understand the significance of risk management and its impact on your investment decisions. Risk is the possibility of losses or uncertainty in achieving desired investment outcomes. Investing, by its nature, Risk management acts as your shield against potential traps in the investment landscape. It includes assessing, analyzing, and minimizing risks to optimize your chances of success. There is a concept known as stops. One of the main stops in risk management is diversification. By distributing investments across different asset classes. However, by understanding risks, implementing diversification, setting realistic goals, finding a balance between risk and reward, and staying informed, you will be better prepared to navigate challenges.