why risk management is important in trading

13 Okt

Without appropriate risk management, events like this can lead to: Loss of all your trading capital or more. Losses that are too large given your overall financial position. ​Having to close positions in your account at the wrong time because you don't have enough liquid funds available to cover margin.

Key Takeaways:

#Trading can be exciting and even profitable if you are able to stay focused, do due diligence, and keep emotions at bay.

#Still, the best traders need to incorporate risk management practices to prevent losses from getting out of control.

#Having a strategic and objective approach to cutting losses through stop orders, profit taking, and protective puts is a smart way to stay in the game.