#Beginnersguide #RiskManagement
RiskManagement - 1
We all started trading seeing someone become millionaire or someone told us that we can become millionaire in no time. But nobody told us about the risk involved in trading.
Let me break it down in my own words.
You are beginner and you have $100 in your account. What should be your risk in each trade?
Some might say, I would risk 20$ in each trade.
Okay! 20$ might seem that you haven't risked too much but if you look at that in perchantage you will notice that it is actually 20% of your total account.
20% risk in 1 trade that's way too much risk, nobody should do that. if you loose only 5 trades your entire account is gone.๐
And let me tell you, 5 continues loss in trade is very very common. Even if you have a 90% winning strategy, you can enter a losing cluster.
I will explain it in detailed in my next post.
Follow me to learn more.
