The 2% Stop Loss rule (Trading risk management)
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Risk management is one of the most important aspects of trading.
How does one manage risk so that a run of losing trades doesn’t wipe you out?
How does one deal with the emotional risk of not acting on a stop loss?
How much money do you risk in any trade?
The 2% rule is by far the best way of managing all of these potential problems and ensuring that your position size for every trade is exactly spot on so you don’t have to worry about the money – just focus on the charts and the discipline.