What is risk management?

Risk management is a crucial factor in achieving trading success. While it isn’t possible to achieve returns without risk, risk must be wisely managed. Typically, high risk is associated with high returns, but that is not always true.High risk can mean that without proper capitalization, you could risk losing your trading equity. Risk management is important and is the string that ties your different trading activities together. Risk management is what brings flavor to your trading strategies or approaches.

Risk Management Concepts

1) Margin and Leverage2) Position Sizing & Trade Size3) Stop Losses4) Hedging

Managing Trading Risk: An Introduction

There is a common saying in the trading community that "Good traders manage risk, bad traders chase profits." Although it may sound like a cliché, successful traders know that it’s true. Risk management starts from the time a trade is being considered until it is closed out.

Risk Management - What is it and Why it is Important

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Managing Trading Risk: An Introduction

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Risk Management - What is it and Why it is Important

This article is available only to alvexo plus members, register now, and get 7 days of free membership.

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