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Risk Management Strategies—Protecting Your Capital from Disaster
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Risk Management Strategies—Protecting Your Capital from Disaster

How Smart Risk Management Keeps You in the Game

TJ Stubbs's avatar
TJ Stubbs
Oct 16, 2024
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Risk Management Strategies—Protecting Your Capital from Disaster
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Hello Trade Warriors,

We’re continuing our journey through the lessons I learned the hard way. Today's topic might be the key factor distinguishing successful traders from unsuccessful ones: Risk Management Strategies.

Look how far we’ve come in this series:

  • Trading vs. Gambling

  • Controlling Emotions

  • Overtrading Kills

  • Risk Management Strategies 👈 You are here

  • Patience Pays Off

Risk management is what separates consistent traders from those who blow up their accounts—and I should know, because poor risk management is exactly what wiped me out early in my trading career.

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How Lack of Risk Management Destroyed My Account

Early on, I focused more on profits than protecting my capital. I thought I could "win big" without setting proper limits, but a few bad trades quickly wiped out my account.

Here’s what went wrong:

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