At one time when I first began learning to trade, risk management was the area I spent less time focusing on, actually almost no time. Like many new traders, I was interested in one thing. Placing a lot of trades and trying to make money doing it (shocker right).
I mean who has time to listen and learn about risk management and the psychology of trading and all the myths and mistakes that 90% of traders make?
Right here and right now. I’ve got to try extremely hard to get you to pay attention because simply put, if you don’t manage your risk you’re going to fail like I did and so many others do when they first get started.
The #1 leading cause of failure in trading is not managing risk when placing trades.
A large part of risk management is your mindset.
Whether you are just starting to trade, or you’ve made a lot of mistakes and have a losing track record, knowing proper risk management skills and taking control of your mindset is imperative for long-term trading success.
Below are 8 great articles that cover the basics and important topics of risk management (it matters!) and you’ll get a solid foundation on which to build handling risk with your trading from reading and internalizing them.