The most effective steps are:
Define an exit plan before you open a trade. Know at what point you will close the position if the market moves against you.
Use a stop loss on every trade. Setting a stop loss ensures your position is automatically closed if the market moves sharply against you – protecting you from sudden moves and making sure you cannot lose more than your defined limit. Ideally, set your stop loss at a level that keeps your total exposure below the 1.5% threshold.
Be deliberate about position size – especially when trading volatile instruments like gold, indices, or oil.
Monitor your open positions actively rather than leaving them unattended without a clear risk management plan.
For practical guidance on stop losses, position sizing, and risk management in volatile markets, visit our Academy.
