Risk Management

Risk Management forms an integral part of the effective management of any Trading or Investment portfolio.

It is not uncommon for traders to risk between 1% - 5% per trade, however, those that opt for the higher end of that scale, therefore, have to withstand a more pronounced psychological journey throughout the life of the trade.

At the beginning of one's Trading Journey, many traders' first goal is to feel confident in risking just 1% of their Trading balance per trade.  This is the figure that we recommend as it allows the ability for trades, even during a prolonged losing streak, to stay in the market for longer as their Trading Balance, in theory, will never reduce to $0.

Implementing robust Risk Management rules and guidelines can be documented within a well-considered Trading Plan.