Protect Your Capital

Risk Management Basics

Master the fundamentals of risk management to protect your trading capital and maximize long-term profitability.

Start Learning
1-2%
Recommended Risk
1:2
Min Risk-Reward
90%
Traders Fail
#1
Priority: Capital

Essential Risk Management Concepts

Position Sizing

Calculate the right lot size for every trade

Stop Loss

Always know your exit before you enter

Risk-Reward

Only take trades with favorable ratios

Psychology

Control emotions, follow your plan

Top Rated Brokers

Best brokers for risk management tools

1Capital.com
9.2
Visit Broker
2XTB
8.5
Visit Broker
3Libertex
8.5
Visit Broker
4ActivTrades
8.4
Visit Broker
5Markets.com
8.3
Visit Broker

Golden Rules of Risk

  • 1.Never risk more than 1-2% per trade
  • 2.Always use stop-loss orders
  • 3.Aim for 1:2 risk-reward minimum
  • 4.Never chase losses
  • 5.Keep a trading journal

Position Size Formula

Position Size =
(Account × Risk%) ÷ Stop Loss

Example: $10,000 × 1% ÷ 50 pips = 0.02 lots

Related Trading Resources

All Broker Reviews Leverage Explained Demo Accounts Compare Brokers