➡️ Never Risk More Than You Can Afford to Lose
A golden rule in trading is to never risk more than 1-2% of your total capital on a single trade.
- If you have $1,000 in your account, risk only $10–$20 per trade.
- This prevents one bad trade from wiping out your account.

➡️Use Stop-Loss and Take-Profit Orders
A stop-loss is a tool that automatically exits your trade if the market moves against you.
- Example: If you buy an asset at 100 and set a stop-loss at 95, your trade will close at 95, preventing bigger losses.
A take-profit order automatically locks in profits when the market moves in your favor.

➡️Risk-to-Reward Ratio (RRR)
A good trader always aims for higher rewards than risk.
- Example: If you risk $50 per trade, your target profit should be $100 or more (Risk-to-Reward = 1:2).
This ensures that even if you win only 50% of your trades, you still make profits.

➡️ Leverage – Use It Wisely
Leverage allows you to trade with more money than you have, but it increases both profits and losses.
- Beginners should use low leverage (1:10 or 1:20) to avoid big losses.

➡️Diversification – Don’t Put All Money in One Trade
Trading only one asset can be risky. Instead, trade multiple assets to spread your risk.

➡️Emotional Control & Discipline
- Never trade based on fear or greed.
- Stick to your strategy and avoid revenge trading after losses.