🛡️ What Is Risk Management? (Stop Loss, Position Size & Safety)
Stock Literacy • Trading Safety • Smart Investing
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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