Trading on the market requires knowledge of the risks involved in operations. Day traders need to be aware of the news and the world economic scenario, as everything can pose greater risks. Being aware of this means minimizing losses, or even identifying them in order to adequately prepare for market challenges. If you don't manage risk well, your results may not even be satisfactory.
Risk management is what gives investors the power to control their operations. With this, the trader defines some points such as the stop loss, leverage, the number of traded contracts, the profit and loss ratio, in addition to the target gain and loss limit per trade, day, month and year.
Trading is often exposing yourself to risk, so it is important to know that there will always be the possibility of winning and losing money, of course. Knowing this, the budget allocated for the day trade must be well defined, and be directed to investments with prudence.
In the thirst for quick profits, it is common for the inexperienced trader to make the mistake of using the money from his family's monthly costs or emergency reserve. This error can cause you unexpected losses and embezzlements especially if he succeeds in the first negotiations.
More than making a profit, a trader must protect his capital and avoid too much exposure. In this way, he will have enough resources to recover from a possible loss. Keeping in the game.