F.A.Q.

Risk management in trading

Every trade must align with your strategy. Use this checklist to filter out low-quality signals and make sure that your trading decisions are based on data, not impulse.

Before opening a trade, ask yourself this:

  1. Is the market context suitable? Market sentiment, economic data, interest rate changes and geopolitical events can disrupt technical patterns. Confirm that there are no major news releases scheduled that could trigger unexpected price spikes.
  2. Does this trade fit my strategy? The setup should meet all the criteria outlined in your trading plan. Don’t force a trade. Instead, monitor the asset's performance to identify optimal entry and exit points.
  3. Is the risk acceptable to me? Make sure that the trade is within your risk limit. Limit risk per trade to 2–5% of your account balance to navigate market fluctuations without compromising your capital.
  4. Am I feeling calm? Avoid trading when FOMO, greed or other emotions influence your decisions. Emotional stability is key to making consistent, rational choices.
  5. Have I spread my risk? Check for over-exposure to a single asset class. Diversify by combining different assets, such as currency pairs with ETFs or commodities.

Tips for traders:

  • Adapt to the market. If high volatility makes your usual strategy ineffective, switch to safe-haven assets to hedge your risk or wait for conditions to stabilize.
  • Analyze first, act later. Don’t rush into trades. If a signal is unclear or runs against the broader trend, it’s better to wait than to risk money on a weak setup.