Technical Analysis post 6# Risk Management.
Risk management by definition is how we manage our capital.
When entering the market as novice players we can make several mistakes, but the mistake that takes its toll the most is risk management.
Without risk management we can lose all or almost all of our capital, risking more than we should by increasing the position size or moving our StopLoss, these are the most common mistakes.
As players we should always try to win more than we lose, in order to generate compound growth.
Although we can be 70% correct in our trades without risk management, we can lose all of our capital in a single trade, which is why we should not have a Stop Loss greater than 2% of our account.
Remember that as players we have losses but they are always measured.
I took this post more personally because like many novice players I lost all or almost all of my capital trading.
And have you already lost a lot of capital or almost all of it? If so, keep your head high so that a stumble is not a fall into the void and remember that in the end only the strongest remain.
Thank you very much for reading the complete post.
I would also like to thank those who like, follow me and share the post, I like to continue growing and teaching with you, have a nice day of earnings see you later.