No matter how good your signals are, without proper risk management, long-term success is nearly impossible. In this article, we cover the fundamental principles every trader must follow.
Position Sizing
Never risk more than 1-2% of your total portfolio on a single trade. This ensures that even a string of losses cannot wipe out your account.
The 1% Rule
By limiting each trade to 1% risk, you can have 10 consecutive losing trades and still only be down 10% — easily recoverable.