Risk Management in Trading by Yalla Tadawul Team

The difference between a successful trader and a failure is often risk management. Here is how to stay in the game.

1. The 1% Rule

Never risk more than 1% of your total capital on a single trade. Lesson: Surviving a series of losses is the first step to winning.

2. Stop-Loss and Take-Profit

Always have an exit plan. Advice: Set your stop-loss before you enter the trade. Don't let emotions move it.

3. Position Sizing

Adjust your lot size based on the distance to your stop-loss, not your greed. Tip: Use a calculator to ensure consistency.

Conclusion

Risk management is not about avoiding loss, but about managing it. Protect your capital at all costs.