#BeginnerTrader #Beginners #Risk_Management
Risk management - 2
Anyone if you haven't read the risk management - 1.
I was talking about the how you can loose your entire account even if you have a 90% winning strategy.
let's look at the math,
In 100 trades if you have 90% winning strategy then, it means you win 90 trades out of 100 trades. That's a very high winning rates even the professional traders doesn't have that much.
But now, we should focus on the loosing side. You can loose 10 trades. If you have a poor risk management, like I described in my previous post [risk management - 1](https://app.binance.com/uni-qr/cpos/8802387512385?r=550464946&l=en&uco=ZCkOdCBlXxjI0qJoGHhG9Q&uc=app_square_share_link&us=copylink) you can loose your profits of 90 trades along with your initial balance.
This loosing cluster can occur at anytime. It can occur at the very beginning of your trading or after 10 winning trades, or 34 or 76 winning trades. But when it comes if you have a risk plan that is, the 20% of your total balance then, this cluster can wipe you out entirely even you won a lot of money.
Another very important thing that i have seen in the community that people promote trading without stoplosses. To me, that's someone who is gambling, not trading.
I will talk about stoplosses , why it's important in my next post.
If you have any questions you can ask in the comment, i will try my best to answer it.