#TrendTradingStrategy Risk management remains one of the most crucial yet often neglected aspects of trading. Many traders focus solely on potential profits while ignoring possible losses.

The cardinal rule of never risking more than 2-3% of your trading capital on any single trade is frequently broken, especially during periods of market volatility or when trying to recover losses.Successful traders consistently us stop losses and avoid overleveraging their positions.

Risk management should include diversification across different markets and asset classes while maintaining appropriate position sizes.