Top 5 Risk Management Rules Every Trader Must Follow
Risk management is the foundation of successful trading. These five rules keep you in the game.
Vikas Panchal4 min read
1. Decide your risk before your entry
The stop loss is the first number you write, not the last.
2. Never risk more than one percent per trade
Ten losses in a row should cost you ten percent, not your account.
3. Respect daily loss limits
Two or three losses in a session means the day is over. The market will be open tomorrow.
4. Size positions by stop distance, not by feeling
Wider stops mean smaller size. Tighter stops allow larger size. Capital at risk stays constant.
5. Journal every trade
If it is not written down, you cannot fix it.
This lesson is for education only and is not investment advice. Trading involves risk of loss and most people who trade lose money. META is not a SEBI-registered investment adviser. Read our disclaimer.
