Risk management is the foundation of successful trading. Without it, even the best strategies can fail.

Always set a stop-loss to limit potential losses. This ensures that one bad trade doesn’t wipe out your account.

Never risk more than a small percentage of your capital on a single trade. A common rule is 1–2% per trade.

Avoid emotional trading. Fear and greed often lead to poor decisions. Stick to your plan and stay disciplined.

Diversify your trades and avoid putting all your funds into one asset or strategy.

Good risk management protects your capital and keeps you in the game long-term.