🤔🤔Risk management in trading is crucial🤔🤔
Suppose you have $100 to trade. If you use 5x leverage, this is like trading $500. This means doubling potential profits and losses. Now, if you choose 50x leverage for the same $100, it's like trading $5,000. This greatly increases risk because even a small change in price can lead to significant losses.
The key here is not to scare you from trading, but rather to emphasize understanding the risks involved. By managing risk, you can protect your money and keep your emotions in check. Fear and greed can cloud your decisions and lead to bad deals.
Therefore, you should always have a risk management plan. Set stop-loss orders to limit losses, diversify your investments, and adjust your positions based on the amount of risk you can handle.
Remember, trading is not just about making money quickly. It's about protecting what you have and growing exponentially over time. Therefore, focus on risk management to trade smart and stay in the game for the long term. 🫡🫡
