Risk Management: The #1 Rule Every Trader Must Follow

The difference between professional traders and gamblers isn't their win rate—it's their risk management.

The 1% Rule

Never risk more than 1-2% of your trading capital on a single trade. This ensures you can survive a losing streak.

## Position Sizing

Calculate your position size based on:
- Account size
- Risk percentage per trade
- Stop loss distance

## Setting Stop Losses

Always know your exit before you enter. A trade without a stop loss is not a trade—it's a gamble.

## Risk-Reward Ratio

Aim for at least 1:2 risk-reward. This means if you risk ₹1000, your target should be at least ₹2000.

## Conclusion

Master risk management first. Profits come from staying in the game long enough to let your edge play out.