Only - that's the max capital active traders should risk on one trade says the one-percent rule This rule shows how crucial risk management is in active trading With big losses possible at any time we'll look at key strategies to keep profits safe and trade with confidence In this article we will explore Risk Management Techniques for Active Traders Key Takeaways Understand the importance of risk management in active trading to protect trading capital Learn how to set effective stop-loss and take-profit points to limit potential losses Discover position sizing strategies to control risk exposure per trade Explore diversification and hedging techniques to manage overall portfolio risk Recognize the role of trading psychology and disciplined execution in successful risk management Understanding the Importance of Risk Management In the fast-paced world of trading managing risk is key for lasting success Risk is how much a trader could lose on a trade It's as important to know the potential loss as it is to set profit goals Good risk management boosts net profits and lets traders handle more losses What is Risk Trading risks come in two main types market risk and trader risk Market risk is about things outside a trader's control that affect the market Trader risk is how a trader handles these market risks While market risks are unpredictable traders can manage their own risks with the right strategies Types of Risk in Trading Market Risk The uncertainty from market changes like price shifts and economic conditions Liquidity... Login to read full