Trading: Six Practical Rules for Risk Management

In trading, survival belongs to those who protect capital. Rule one: risk a fixed share per trade
(e.g., 0.5–1%). Rule two: define the stop loss BEFORE entering, so your position size is calculated,
not guessed. Rule three: avoid over‑correlation; five tech longs are one big bet. Rule four: respect
your plan and journal every trade with reasons and results. Rule five: cut size during drawdowns,
don’t increase it. Rule six: focus on a few simple, repeatable setups validated with backtests and
demo. Markets reward discipline more than intuition. Losses are part of the game; risk is the price
of returns—your job is to control it with method, numbers and patience.