All terms
The rules that keep one bad decision from ending your participation.
Risk management is position sizing, stop placement and exposure limits. It decides how much you lose when you are wrong, which is the only variable you fully control.
Most people who leave crypto did not leave because they picked badly. They left because one position was too large.
Risking a fixed 1 percent per idea means ten consecutive losses costs about 10 percent, which is entirely recoverable.
That risk management is for professionals. It is the only reason anybody survives long enough to become one. The rules matter most exactly when you least want to follow them, which is why they are decided in advance.
Common questions
What is the single most important rule?
Does risk management apply if I only buy and hold?
Where this comes up on the site
The guides that actually use this word, rather than a list of everything we have written.
Where to go next
More trading terms
Want this explained out loud?
Some of these land faster in conversation than in writing. Sessions are one to one and you can ask anything, including the things that feel too obvious to ask.