When reading through many trading groups on Facebook we often see questions asked about risk and position sizing.
What should my lot size be? Why am I down with 50% today? etc.
These questions circle around the art of controlling your risk. Through our many years of trading we have been trained by a lot of different mentors with different methods, strategies and view on the market. But one thing that has been almost the same from mentor to mentor was their way of approaching risk management.
As one of my mentors said many years ago: The second you put on a trade, you are no longer a trader, you now become a risk manager.
This is one of the most important things to learn as a trader. Without proper risk control you will soon go broke.
To give you an idea of how we are working with risk management we have made a couple of videos about the topic. The first one here is about compounding interest and what kind of trading goals you should aim for.