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Learn to invest wisely
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Module 11
Risk Management and Portfolio Maintenance
Protect Your Capital: The 1-2% Risk Rule
Apply the 1-2% risk rule per trade to preserve trading capital.
2
Position Sizing for Risk Management
Calculate the appropriate position size for a trade based on account size and stop-loss level.
3
Setting Stop-Loss Orders
Set a stop-loss order to define and limit the maximum potential loss on a trade.
Mastering Risk/Reward Calculation
Calculate the risk/reward ratio of a potential trade before entry.
5
Trailing Stops for Profit Protection
Use a trailing stop order to protect profits in an active trade.
Rebalancing Your Portfolio
Periodically rebalance a long-term portfolio to maintain its target asset allocation.
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Active Trading Strategies
Next module
Investor and Trader Discipline