“Risk Is the Only Thing You Control — Master It or Lose Everything”🚨
📉 Most traders don’t lose because of bad analysis — they lose because they ignore risk management.
A “good trade” isn’t just about finding the perfect entry. It’s about:
• How much you risk
• Where your stop-loss is
• What your plan is if the market turns against you
🔥What Is a Risk Management System?
A structured set of rules that protect your capital — not from the market, but from your emotions.
You can’t control news, price spikes, or black swans — but you can control:
• Position size
• Stop-loss levels
• Risk per trade
• Portfolio exposure
⚙️ 3 Core Elements of Smart Risk Management
1️⃣ Risk Per Trade
A common rule: Risk no more than 1–3 % of your total capital on a single trade.
Example: With a $1,000 account, don’t risk more than $10–$30 per trade.
This way, even 5 losing trades in a row won’t wipe you out.
2️⃣ RRR — Risk-Reward Ratio
Target a minimum 1:2 or 1:3 risk/reward.
If you risk $20, aim to make $40–60.
This way, you can win only 40% of your trades and still be profitable.
3️⃣ Position Sizing
Don’t randomly enter trades. Use tools like the Position Size Calculator to define how much to invest based on your stop-loss and capital.
📌 Conclusion:
You can’t control outcomes, but you can control exposure.
Discipline in risk is what separates pros from gamblers.
Without it, even the best strategy will fail.
Master risk, and you’ll outlast 90% of traders.