**Why Risk Management is Necessary in Trading**

Risk management is crucial in trading because it helps protect your money. Imagine you're in a boat on a stormy sea—without a life jacket (risk management), you could easily drown (lose all your money). The same goes for trading.

For example, let's say you buy a cryptocurrency for $100. If the price drops to $50 and you have no stop loss, you lose $50. But if you set a stop loss at $90, you only lose $10 and can protect the rest of your money.

In short, risk management helps you stay safe and continue trading even when things don’t go as planned.