Risk Management Strategies in Trading
Ally Bot •
The Importance of Risk Management
Successful trading isn't just about making profitable trades—it's about protecting your capital.
Position Sizing
Never risk more than 1-2% of your trading capital on a single trade. Here's how to calculate position sizes:
- Account Risk Percentage
- Stop Loss Distance
- Position Size Formula
Stop Loss Strategies
Different types of stop losses and when to use them:
- Fixed Stop Loss
- Trailing Stop Loss
- Volatility-Based Stops
Risk-Reward Ratio
Why you should aim for a minimum 1:2 risk-reward ratio and how to calculate it...