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


Position Size Calculator: Your Risk Manager


A position size calculator is a useful tool for managing risk in trading.


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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