How do traders manage risk?
Learn how stop losses, position sizing, and diversification help protect your trading account.
Risk management protects your capital. Common methods include:
Setting a stop-loss to limit how much you can lose.
Risking only a small part of your balance per trade (for example, 1–2%).
Diversifying across different stocks or sectors.
In short: Trade with a plan and protect your downside before chasing upside.