Risk Management in Forex Trading: The #1 Rule to Protect Your Money | Lian Trade Academy
Introduction Most people lose money in Forex not because they don’t know strategies — but because they don’t manage risk. You can have the best setup, the best signal, and still blow your account if you don’t control risk. That’s why risk management is the #1 rule in trading. In this lesson, Lian Trade Academy will explain risk management in a simple way, especially for beginners. What Is Risk Management? Risk management means protecting your trading capital by controlling how much you can lose in one trade. A trader who survives long enough will always have another chance to win. A trader who blows the account has no chance. The #1 Beginner Rule: Don’t Risk More Than 1% This rule is simple: ✅ Risk 1% or less of your account per trade. Example: If your account is 100,000 TZS , then 1% risk is 1,000 TZS only. Even if you lose 5 trades in a row, you will still have money to continue and improve. Always Use Stop Loss (SL) A Stop Loss is a pre-set point where yo...