Risk Management in Trading

In trading, managing and controlling risk is crucial. In fact, I believe that a failure to respect and therefore manage your risk when trading will ultimately lead to your trading demise. Many people lose a lot of money while trading by failing to understand and manage risk.

In this video, Stuart McPhee (from http://www.trading-plan.com) explains how one of the things that separates successful traders from the rest of the market is that they have a plan for getting out of a trade, whether it be at a loss or a profit. The planning and execution of exits is far more important than the planning and execution of entries.

Category:

Education

Tags:

• Trading
• Risk
• Management
• Stuart
• McPhee