Risk Management Basics for new traders
What is risk management and why is it important?
Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events[1] or to maximize the realization of opportunities.
Here I talk about 5 Basic topics:
1) Stop Loss
2) Risk
3) Size
4) Evolving the trade
5) Drawdown
Please keep in mind these are my personal basic view to give you understanding of the market. I highly recommend getting help from a professional before trading or taking financial advice.
Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events[1] or to maximize the realization of opportunities.
Here I talk about 5 Basic topics:
1) Stop Loss
2) Risk
3) Size
4) Evolving the trade
5) Drawdown
Please keep in mind these are my personal basic view to give you understanding of the market. I highly recommend getting help from a professional before trading or taking financial advice.
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