Risk management is simply the process of identifying risk and understanding how much risk an individual can handle in a given financial market. Though subjective, there are many different styles and formats for proper risk management. Each person, depending on their emotions, priorities, and goals, will have a different level of risk tolerance they are willing to take on.
Risk management is arguably the most important topic to learn before you begin trading. The whole act of trading involves putting money at risk with the potential of making a profit. This guide introduces you to the ideas of risk management so you can ensure a successful trading career regardless of which market you choose.