Market Review – 09.05.22

Alright… Not one of the most exciting subjects we have ever covered, but definitely one of the MOST important.

Risk management is something so many traders “think” they have locked down, but actually what they are doing is taking themselves down a road of no return.

Both for them and their account balance.

And what’s worse…

There is a group that simply overlooks risk altogether, or takes some one-time advice that is usually completely inappropriate for them and the way they trade!

So how do you make sure you not only know what to do when it comes to risk management, but you ACTUALLY do it?

First Off…Know Your Numbers

Yes, it’s a small bit of maths, but knowing the simple multiples can save your account balance!

Let’s say you are risking 10% of your cash pot per trade.

But that only requires a 5 trade-losing run to be the best part of 50% down overall.

Oh well, I still have half my money.

Hang on!

You now need a 100% return on that balance JUST to get back to where you were 5 short trades ago.

Let that sink in for a second…