#Risk&Reward #RiskManagement #moneymanagement #training

Hey guys,

I have prepared for you the top risk management information that everyone should know if you want to trade profitably and over the long haul.

There will be a series of tutorials on this topic.

Part 1

Risk management is probably the very first thing that should be built in the work of a trader or an active investor.

We proceed from the fact that any market participant buying financial instruments crypto, futures, stocks, etc. becomes a trader or otherwise engaged in speculative trading, so to fully understand risk management is more important than everything else taken together (psychology of trading, entry points, technical analysis, etc.). Without this, speculative trading cannot be profitable in principle, it is not some buzzwords, but simple math further you will see for yourself.

Our main task is to keep your deposit, and risk management allows the trader to keep it for a long distance, even despite the queue of losing trades.

Deposit size.

The first thing to understand is that it is forbidden to trade on borrowed money or on the last money, the moral pressure that will be exerted on you in fear of losing will not allow you to trade calmly and withstand your trading system.

The deposit should not be too large, so that in case of its loss it will lead you to irreversible financial consequences. On the other hand, the size of the deposit should be such that the loss of which will be sensitive for you. Everyone can determine its size by calculation. I would suggest a formula of 3 to 5 personal monthly income. You should be prepared for the fact that most likely your first deposit will be lost, so it is desirable that you have the opportunity to split the allocated amount for trading into 2-3 deposits.

Next we will use the deposit amount of $10,000 as an example.

Stay tuned.