Introduction

It’s time to get down to the more technical aspects of risk management.

There’s one fundamental rule to this and it’s something you have to promise yourself you will stick to.

That rule is to define a strict set of trading rules for entry that adhere to the risk management principles that have been covered, and the ones that you’re about to read, and trade using them. That’s it. It’s not asking a lot. Just remember, discipline is key here, so make sure your rules are comprehensive and don’t break them under any circumstances! That’s the lecture over. Now it’s time to cover the technical side of risk management.

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