Thoughts on Risk Management

[Manav Kole]

Risk management is the proactive process of identifying, assessing, and mitigating potential risks to minimize adverse impacts on investment portfolios or business operations.

 

[FXO_trader]

Very few people write that trading is, first of all, a system, proper money management, discipline and statistics. In trading, you need to immediately get used to being systematic and analyzing all your actions. Otherwise, the trader will never achieve stability; 5-10-15 years will pass, but the level of trading will not change.

 

[N_Chandel89]

Effective risk management is crucial for long-term trading success; it involves setting stop-loss orders, diversifying portfolios, and only risking a small percentage of capital on each trade to protect against significant losses.