Risk management is really important in trading?
I Don't want to talk much on the topic before putting a real example of recent action in Nifty price action and traders lost a big part of their capital. Date- 15 March 2022 (3 days back) We got a superb Bearish pattern with high volume on the Nifty chart at a strong resistance level. People shorted with high conviction and a few bought Puts and others shorted Calls. & Next day what happened? Date- 16 March 2022 If someone shorted with full of their capital, they are bound to lose most of their capital in one day. Technical or Fundamental analysis is just a method of analyzing & believe me anything can fail but not you? why? we are not GOD or GODDESSES! The maximum we can do is keep a hold on Fear and greed while trading with proper logic, the above-given example was very good logic and this can happen multiple times. So, we need to maintain risk with the worst-case possible scenario in every trade to save your system to collapse someday with these kinds of crazy moves whic...