Risk management in Trading
By Stock Trader Karan
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Risk management is an essential factor in trading because it helps traders minimize potential losses and protect their capital.
By Stock Trader Karan
Following are the different techniques that a trader can apply to their risk management:
By Stock Trader Karan
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Position Size Calculator: Your Risk Manager
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A position size calculator is a useful tool for managing risk in trading.
FREE POSITION SIZE CALCULATOR
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POSITION SIZE CALCULATOR
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Use a stop loss order:
Stop-loss orders can protect your profits and trading capital from big losses.
The 2% Rule in Trading:
This rule says that on any given trade, your loss should not exceed 2% of your total capital.
Use a trailing stop loss:
This can help traders lock in profits and limit potential losses at the same time.
Additionally
, diversifying your portfolio is also a crucial step in risk management.
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