#NewbieGuide Understanding the Importance of Risk Management Early Risk management is the difference between trading success and failure. Beginners often focus only on profits, ignoring how to protect their capital. Proper risk management means using stop-loss orders, controlling position sizes, and never risking more than 1–2% of your account on a single trade. By setting clear limits, you ensure survival during losing streaks and stay in the market long enough to learn and grow. Smart risk control turns losses into valuable lessons instead of disasters.