why risk management is important in tradingWithout appropriate risk management, events like this can lead to: Loss of all your trading capital or more. Losses that are too large given your overall financial position. Having to close positions in your account at the wrong time because you don't have enough liquid funds available to cover margin.
Key Takeaways:
#Trading can be exciting and even profitable if you are able to stay focused, do due diligence, and keep emotions at bay.
#Still, the best traders need to incorporate risk management practices to prevent losses from getting out of control.
#Having a strategic and objective approach to cutting losses through stop orders, profit taking, and protective puts is a smart way to stay in the game.
