How to manage your trading risk and money management

This is the seventh video of my ten day trading challenge! Day 7: How to manage your trading risk and money management. Risk management is something even experienced traders can get away from and lose money.

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Here are my tips to manage your trading risk:

1. Risk management : use a 3 to 1 take-profit to stop-loss ratio. A stop order will prevent you from experiencing any further losses. This also means that the trades you're taking should be capable of making this kind of a move.

2. Beginners lose a lot of money fast because they risk too much too fast. Never risk than 1% of your total trading deposit on any given trade. As an example, if you risk 10% of your deposit on each trade, then just three trades can cost you 30% of your total deposit in an hour - or even faster!

3. Overtrading costs many traders a lot of money. Use the "3 losses rule" to protect yourself. Once you lose three times, get up and walk away. You're done for the day.

4. Making money in the morning and then losing it all throughout the day. Don't give up more than 25$ of your profits!

Видео How to manage your trading risk and money management канала Thomas Kralow