Mastering Risk Management: Lessons from Linda Raschke

You can follow your trading strategies perfectly, but if you don’t manage risk well, you won’t be profitable.

Here’s how to master risk management with 5 lessons from Linda Raschke🧵:

Risk Only What You Can Afford to Lose

“Never risk more than 1-2% of your trading capital on a single trade.”

• Define your risk tolerance
• Control your position sizes
• Protect your capital

Use Stop Loss Orders

“Always know where you’re getting out before you get in.”

• Set stop-loss orders for every trade
• Stick to your exit strategy
• Limit potential losses

Learn from Your Mistakes

“Every loss is a lesson.”

• Analyze your losing trades
• Identify what went wrong
• Use insights to improve

Diversify Your Trades

“Don’t put all your eggs in one basket.”

• Spread trades across different assets
• Reduce overall risk
• Balance your portfolio

Manage Your Emotions

“Keep emotions out of your trading decisions.”

• Avoid trading based on fear or greed
• Maintain emotional discipline
• Make rational decisions

To learn more about How you can Start Trading for a living, sign up below for my Free Training on the “7-Steps to Financial Freedom through Trading”.

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