Risk Management Strategies📉📈🚫:
Risk management rules and strategies are not tough to understand, even a beginner can easily understand them. The only problem being, it is difficult for people to implement them while trading because human emotions of ego, greed and fear are involved in it.
A beginner would require a lot of practice to get into a habit of following these risk management strategies in each and every trade. Risk Management Strategies -
•Follow the Trend
•Plan the Trade
•Trade with appropriate Risk: Reward Ratio
•Control Emotions
•Position Sizing
•Applying Strict Stop Loss
•Booking Profits at right time
Risk management helps cutting down losses and also helps to protect a trader's account from losing all of its money. After all, a trader who has generated substantial profits can lose all of it in just one or two bad trades without a proper risk management strategy.
Although risk management is a key aspect to long term success in trading, it is still the most underrated aspect of trading, for many people.
So, it is my humble request, never underestimate the importance of risk management aspect in your
trading journey,specially if your are index/options trader(nifty50, banknifty, stockoptions)
Note: This post is for educational purpose only.
Hope you all have enjoyed🙏🏻& found it helpful❤️
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