Risk management is the foundation of long-term trading success. Without proper risk control, even the best strategy can fail. Many professional traders follow a simple rule: never risk more than 1–2% of their capital on a single trade.
This approach protects the account from large drawdowns. Even if several trades fail in a row, the overall account remains stable. On the other hand, risking a large percentage of capital in one trade can destroy months of progress instantly.
Trading should always be approached like a business where capital preservation is the first priority.
Do you calculate your risk before entering a trade? 🎯