⚖️ Risk Management: The Divider Between the Professional and the Gambler!
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📉 How do you protect your capital?
– The golden rule for professionals: Do not risk more than 1% to 2% of your total portfolio in a single trade.
– This means that even if you lose 10 consecutive trades (which is rare), you will still have more than 80% of your capital left to recover from the loss.
💡 Why do beginners fail?
– Because they enter with 50% or 100% of the portfolio in a single trade, tempted by quick profits.
– One large loss here could take you out of the market forever.
– "Preserving capital" is much more important than "making a profit"; because without it, you cannot play.
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❓What percentage do you usually risk in a single trade?
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