Protecting Strategies

[Amy4]

How do you minimize your risk when trading, and what strategies can you use to protect your investments?

 

[Chadpowell]

Set real SLs, control your emotions to not change them during the trade, and also try to avoid overtrading (when the number increases, the quality decreases)

 

[AlexOZ]

How do you minimize your risk when trading, and what strategies can you use to protect your investments?

Great question as you'll probably survive longer with 'what am I willing to risk?' versus 'how much money do I want to make?'. It's already been said but set a stop loss order to a level that the trade appears lost. That also means you can walk away from the computer without feeling stressed if all goes bad. Now this is the complicated part - you need to size the trade to risk no more than a small percentage of your account (e.g. 1%). Fortunately there are online calculators to help. Also your trading platform is likely to have one as well. Best of luck going forward.