What Is Risk Management? (Stop Loss, Position Size, Safety)

🛡️ What Is Risk Management? (Stop Loss, Position Size & Safety)

Stock Literacy • Trading Safety • Smart Investing

Risk Management

Risk management is the process of protecting your money while trading or investing 💰🧠. Even the best traders are wrong sometimes — but great risk management keeps them profitable long term.

Why Risk Management Matters ⚠️

  • Prevents big losses
  • Controls emotions
  • Keeps your strategy consistent
  • Helps you survive long-term

Key Tools 🧰

  • Stop Loss: Automatically limits risk
  • Position Size: How much money to put in each trade
  • Risk/Reward Ratio: Your potential gain vs risk 📏

Smart traders don’t try to be perfect — they manage risk so even losing trades won’t hurt them 🔐.

Educational only — not financial advice.

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