All about Risk Management

31 January 2020


    All about Risk Management


    Let's talk about Risk Management. Risk in trading is associated with any potential losses you may encounter along the way. And as important as it is, Risk Management is a topic that often gets overlooked. 


    But how can you manage risk?


    1. Plan your trades - choose your broker wisely and set up your trading strategy after careful and thorough market analysis.


    2. Set Stop Loss and Take Profit targets - make sure you have preset how much you are willing to lose and gain from each trade. 


    3. Consider the 1% rule - this rule of thumb suggests that you never put more than 1% of your capital on a single trade. Sometimes traders go as high as 2% if they can afford it, but not more than that. 


    A high-end trading platform is also your best friend for proper Risk Management. Equipped with Advanced protection features such as 4 levels of Advanced Take Profit, Advanced Stop Loss and sophisticated technical analysis tools, Fondex cTrader helps you enhance your analyses and protect your trades to the max.