Summary

Risk management is a key component of responsible investing and trading. You can reduce the overall risk of your portfolio through various risk management methods, such as diversifying, hedging against financial events, or executing simple stop-loss and take-profit orders.

Introduction

Minimizing risk is a top priority for many investors and traders. Even if your risk tolerance is high, you will still weigh the risk and reward of your investments in some way. However, risk management is more than just choosing less risky trades or investments, it involves a comprehensive set of risk management strategy tools, many of which are suitable for beginners as well.