📚 Lesson Five | Risk Management and Capital
🎯 Title
If you don’t learn risk management... no profit will protect your account!
📌 What is risk management?
It’s a set of rules that helps you protect your capital and reduce losses, so you can continue trading in the long run.
💰 Golden rules
🟢 Don’t risk more than 1% to 2% of your capital in a single trade.
🛑 Use a Stop Loss in every trade.
📊 Don’t enter a trade if the reward-to-risk ratio is less than 1:2.
⚠️ Important information
A successful trader doesn’t make profit in every trade, but they protect their capital and make their long-term gains greater than their losses.
❌ Common mistake
Doubling the trade size to make up for a previous loss—this is one of the most common reasons accounts get wiped out.
🎯 Practical application
If your capital is 1000 USDT, don’t let the maximum loss in a single trade exceed 10 to 20 USDT.
❓ Today’s question
What is the recommended maximum percentage of risk per single trade?
🟢 Answer: Between 1% and 2% of your capital
🎯 Title
If you don’t learn risk management... no profit will protect your account!
📌 What is risk management?
It’s a set of rules that helps you protect your capital and reduce losses, so you can continue trading in the long run.
💰 Golden rules
🟢 Don’t risk more than 1% to 2% of your capital in a single trade.
🛑 Use a Stop Loss in every trade.
📊 Don’t enter a trade if the reward-to-risk ratio is less than 1:2.
⚠️ Important information
A successful trader doesn’t make profit in every trade, but they protect their capital and make their long-term gains greater than their losses.
❌ Common mistake
Doubling the trade size to make up for a previous loss—this is one of the most common reasons accounts get wiped out.
🎯 Practical application
If your capital is 1000 USDT, don’t let the maximum loss in a single trade exceed 10 to 20 USDT.
❓ Today’s question
What is the recommended maximum percentage of risk per single trade?
🟢 Answer: Between 1% and 2% of your capital
