VT
Ved Trading Institute
Financial Education Provider
6 min read
The Foundation of Successful Trading
Risk management is the cornerstone of successful trading. Without proper risk management, even the best trading strategy will eventually lead to significant losses.
Position Sizing
One of the most critical aspects of risk management is determining the appropriate position size for each trade. Never risk more than 1-2% of your total capital on a single trade.
Stop Loss Orders
Always use stop loss orders to limit potential losses. Place them at logical levels based on technical analysis, not arbitrary percentages.
Diversification Strategies
Don't put all your eggs in one basket. Diversify across different markets, timeframes, and strategies to reduce overall portfolio risk.
Tags
Risk ManagementPosition SizingStop Loss
