Risk Management

Risk management is what separates profitable traders from gamblers.

**Golden rules:** - Never risk more than 1–2% of your account per trade - Always set a Stop Loss before entering - Aim for a minimum 1:2 Risk-to-Reward ratio - Don't revenge trade after a loss - Keep a trading journal

**Position size formula:** `Lot Size = (Account × Risk%) ÷ (SL in pips × Pip value)`