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What is Risk Management?

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리스크 관리

Setting the size in advance so that one failure cannot end the whole account. How much is put at stake affects the result more than what is bought. Even with good judgment, if the size is excessive the account can vanish in normal fluctuations first. In practice it starts with fixing numbers for the loss limit per trade, the daily loss limit, and the number of positions held at once.

Risk Managementroom to losequantitythe amount lost at once is fixedwhat you set first is the amount you can lose, not the amount you can gain

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Risk Management meaning — Trading glossary | MarketSurfer