Risk Management and Position Sizing in online trading

Managing risk is a critical aspect of online trading. It's essential to determine the maximum amount of capital you're willing to risk on each trade and adhere to proper position sizing principles. This involves calculating the appropriate position size based on your risk tolerance, stop-loss level, and overall portfolio allocation. By implementing risk management techniques such as diversification, stop-loss orders, and risk-reward analysis, you can protect your capital and preserve long-term profitability.