I'm Veen, a forex, crpto and a synthetic trader.
Come with me let me show one of the hidden secrets of being a successful trader.

🧩 Proper Risk Management

You understanding proper risk management duly has the power to curtail losses so you don’t lose or give out your entire capital. It’s a vital technique that applies to anything involving probabilities.

I need you to answer this question;

If you have a $1,000 trading account, would you risk $500 on each trade?

"Of course not, that is way too risky".

"E no too bad, I go run. I get mind."

"One thing must kill a man. Money must be made. I go run am with full chest".

"I can't bro, it's way too risky".

You might be thinking one of those right? I gat you.😉

Let me burst your bubbles, do you know it only takes 2 losses in a row, and you’ll lose everything!

Clearly, you should never risk too much per trade and definitely never go all in on a single trade.

Let's assume we have two traders, Kelechi and Chibuzor. They both started there trading journey with a sum of a $100 account.

Kelechi is an aggressive trader, and he risks $50 on each trade.

Chibuzor is a conservative trader and he risks $20 on each trade.

Both adopted a trading strategy that wins 50% of the time with an average of 1:2 risk to reward ratio.

Over the next 8 trades, the outcomes are Lose Lose Lose Lose Win Win Win Win.

Here comes the outcome for Kelechi's trading results;
-$25 -$25 -$25 -$25 which results to blowing up of his account.

While here lies the results of Chibuzor trading account;
-$10 -$10 - $10 -$10 +$20 +$20 +$20 +$20 = +$40.

Do you see the power of risk management wields?

So here’s the deal:
As a trader, encountering loses is inevitable it happens to even the best of traders.

But when you properly stick to risk management, you can curtail these losses.

Risk management could be a major factor on whether you’re a consistently profitable trader or losing trader.

Remember, you can have the best trading strategy in the world. But without proper risk management, you sure are definitely heading to blowing up your trading account. It’s not a question of if, but when.

I believe these contents, has really broaden your minds to one of the secrets of being a successful trader. If indeed you love these contents, and indeed want to learn more, join my Telegram channel Veenacademy.

If you read to this point, you are the real M.V.P. I salute you. 👏