{Risk management is the {core|foundation|heart} of profitable trading. Many traders in India ignore this step, which leads to {quick losses|account wipeouts|emotional stress}. This guide covers exactly how to {preserve your funds|limit damage|grow safely}.
{What is risk management?|Why it matters in trading|The difference between gamblers and traders}
Risk management means {controlling how much you lose|knowing when to exit|trading with balance}. You cant win every trade, but you can {avoid big losses|survive drawdowns|stay consistent}.
- {Use stop-loss on every trade|Never enter without an exit plan|SL is your best friend}
Decide how much youre willing to lose
Place your stop before opening the position
Dont move it emotionally afterward
- {Use correct lot sizes|Avoid oversized trades|Match position size to account balance}
For small accounts, trade micro-lots
Keep risk per trade under 2%
Leverage increases profit but also danger
- {Avoid overtrading|Fewer high-quality setups are better|Dont force the market}
Only trade when signals align
Sitting out is also a strategy
You dont get paid per trade, but per smart decision
- {Diversify your trades|Dont put all capital in one asset|Trade multiple markets wisely}
Use different timeframes
Mix assets (forex, metals, indices)
Monitor correlation between pairs
- {Track performance regularly|Learn from your past|Journal your trades weekly}
Note why you entered and exited
Analyze win/loss ratios and mistakes
Improve based on real data
- {Set monthly risk goals|Have a clear drawdown limit|Know when to stop trading}
Example: stop trading if down 10%
Pause for Deriv login recovery, not revenge
Return fresh and recalibrate
{Indian traders who survive the longest are not the luckiest|Longevity in trading requires protection|Big profits come from smart defense}. Use this guide to stay in control and grow sustainably.
