Why 90% of Traders Blow Their Account?-And How to NEVER Be One!Bitcoin / US DollarCOINBASE:BTCUSDMaster_HunterWhat is Risk Management? ⚠️ In trading, it means evaluating, measuring, and reducing potential losses , while capital management focuses on preserving and growing your capital. The main goal is to ensure that even if several trades turn out to be losers, your entire account doesn't get wiped out. For example, always ask yourself before entering a trade: "How much am I willing to lose?" ❓ This helps maintain your trading psychology 🧠 and prevents emotional decisions 🚫. Practical Risk Management Techniques: Using Stop-Loss and Take-Profit: Always set a stop-loss 🛑 so the trade closes automatically if the market moves against you. Also, use trailing stops to adjust the stop as the market moves in your favor and lock in more profits 💹. Position Sizing: Never risk more than 1-2% of your total capital on a single trade. For example, if your account is $10,000, risk a maximum of $100-200 💸. This is called the "2% rule" and helps keep your capital safe even after several consecutive losses 🔄. Risk-Reward Ratio: Always aim for at least 1:2 – meaning for every 1 unit of risk, target 2 units of potential reward. For example, if you risk $100, aim for at least $200 in profit. This way, even if only 50% of your trades win 🏆, you'll still come out profitable overall. Diversification: Spread your capital across different markets (like forex, crypto, and stocks) to ensure that risk in one market doesn't impact everything else. For example, allocate 30% to stocks 📊, 40% to forex 💱, and 30% to crypto 🪙.