Risk management is the cornerstone of successful trading. Without it, even the best strategy will fail.
**Position Sizing**
Never risk more than 1-2% of your capital on a single trade.
**Stop Losses**
Always set stop losses before entering a trade. No exceptions.
**Diversification**
Don't put all your eggs in one basket. Spread risk across multiple assets.
**Risk-Reward Ratio**
Aim for at least 1:2 ratio. Risk $100 to potentially make $200.
