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‼️Risk management is essential for traders, as It helps to manage losses and means we are best placed to remain profitable even when losing some trades.

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💎The 1% rule just means you never risk more than 1% of your capital on any given investment. (There are risk management calculators to calculate your risk for you.)

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✍🏼Personally, we would risk 1% to make 5% on any trade as a general rule of thumb. Meaning we apply a risk reward ratio of 1:5 so each win is the equivalent of 5 losses.

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📖Risk reward ratio - Is used so investors can see the expected returns of an investment compared with the risk they must take to achieve these returns.

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📖Taking partials - Is when we take a portion of profits off a running trade to reduce the level of risk in the remaining trade.

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📖Break even - We would use this to describe when a trade closes with zero profit and zero loss. Therefore the trade has broke even.

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#bullish

#learntoearn