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General TradingR
Risk Management
The process of identifying, assessing, and controlling potential losses in trading through strategies such as position sizing, stop-loss orders, diversification, and hedging. Effective risk management is essential to long-term trading success.
Example
“A disciplined trader never risks more than 1% of their total account on any single trade, using calculated position sizes and stop-losses to ensure a losing streak won't devastate their capital.”