😳 Proper Risk Management😳

Proper risk management involves calculating the position size before entering a trade to ensure that if the stop loss is hit, you only lose a small percentage of your account balance, typically 1%. 🗿

For example, if your trading account is $10,000, and you are taking a long position, you should only lose $100 if the stop loss is hit. 😼

To calculate the position size, use a position size calculator provided by the exchange, enter your entry price and stop loss as an exit price, and adjust the quantity/size until you get 1% of your account balance as a loss. 🎧

This helps manage risk and avoid losing your entire account on a single trade. 🤓

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