The fact is that most traders, regardless of how intelligent and knowledgeable they may be about the markets, lose money. Are the markets really so enigmatic that few can profit or are there a series of common mistakes that befall many traders? The answer is the latter. The good news is that the problem, while it can be emotionally and psychologically challenging, can be solved by using solid risk management techniques. Today, we will discuss 2 key aspects of risk management. Risk a little to make a lot – use at least a 1:2 risk to reward ratio Risk a small portion of your account – risk less than 5% of your account ... (full story)