The Risk Most New Traders Underestimate
It isn't the market. It's position sizing. A practical look at why it trips up so many beginners.
Position sizing is one of the most important parts of risk management because it determines how much a single trade can affect an account.
A trader can have a reasonable strategy and still experience severe losses if individual positions are too large relative to the account.
Risk management does not remove losses, but it can help prevent one bad trade from becoming a catastrophic event.