All terms
Definition
Risk Management
Risk management is the process of protecting your trading account by controlling how much money you risk on each trade.
Quick take
Controlling how much you risk per trade.
Keep this in mind every time you see risk management on the chart — context is everything.
Did You Know?
Most professional traders risk only 0.5%–1% of their account on any single trade.
Common Beginner Mistake
Risking too much on one trade trying to 'make it back fast' — which is exactly how accounts get blown.