It’s all too easy to disregard the importance of risk management when it comes to trading. But remember, even if you’ve been enjoying an excellent rate of success in percentage terms, you could all too easily lose a high proportion of your gains should just a couple of trades go wrong.
That’s the danger, unless you use a robust risk management system to ensure you’re keeping the losing trades under control.
Serious planning
Becoming a consistently profitable trader over the long term in large part boils down to being able to professionally manage both your profit points and your stop-loss orders. Rather than stumbling into a trade with no strategy on a wing and a prayer, this is all about serious planning.
- Firstly, we need to understand why we are taking the position and related to…
