HOW TO MANAGE RISK WHEN TRADING-
➡️ Moving SL to BE point. This helps in removing unnecessary emotions.
➡️ Take off some partials
➡️ You can consider hedging
➡️ Risk not more than 2% of your trade Losses are part of the game just like I mentioned. Any trader not willing to take losses should pack his belongings and look for an alternative job. Do not take losses personally.
HOW TO INCREASE YOUR RISK REWARD RATIO-
➡️ Improve on your entries
➡️ Reducing SL
➡️ Journal your trades
➡️ Study the winning trades that worked perfectly
➡️ Let your winner run and cut losses quick
➡️ Improve on your exit strategy
IMPORTANCE OF HAVING A GOOD RISK MANAGEMENT-
➡️ It enables you as a Trader to be in control of your emotions as you have already pre-determined the amount you are exposing to risk.
➡️It permits you to trade in a smart way and give you the flexibility as a trader to choose how much you want to risk per trade in a way that will allow you to maximize your profits and minimize your losses.
➡️ It gives you a greater chance to survive in the Trading business.
➡️ Not following any Money Management rules has the potential to break your trading career.