How Risk Management Works in Day Trading?

How Risk Management Works in Day Trading?

Risk management limits potential losses. It sets rules for trade size, stop loss, and capital exposure.

Main principles:

  • Use a risk-reward ratio
  • Set a stop-loss for every trade
  • Avoid overtrading
  • Keep trade size consistent

Risk management helps with long-term survival in markets. It does not eliminate losses. It reduces the impact.

Courses available in Apex eBooks include step-by-step guides on trade setup with risk rules.

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