In the world of trading, it's not the smartest who wins, but the one who "survives." Risk management isn't just a mathematical formula; it's the difference between wealth and losing everything in a single night.
The 1% Rule: Why is it Sacred?
Professionals always advise against risking more than 1% of your account balance on a single trade. This means you would need 100 consecutive losses to blow your account—nearly impossible if you have a sound strategy.
1. Risk to Reward Ratio (RRR)
Never enter a trade if the profit target isn't at least twice the stop-loss size (1:2). With this logic, even if you lose half your trades, you will still end up profitable because of the large profit size compared to small losses.
Stop Loss: Your Friend, Not Your Enemy
Many novice traders view the Stop Loss as an enemy that hits their positions. The truth is, it's the "safety belt" that saves you when the market decides to move against you due to sudden news.
2. Capital Management in the Crypto Era
Due to high volatility in crypto, risk management here requires greater flexibility. AURA advises reducing leverage to the minimum possible levels and relying on technical analysis to determine deep entry zones.
3. Diversification: Don't Put All Your Eggs in One Basket
Distributing capital among major currencies, stocks, and gold reduces the impact of sudden crises in a specific sector on your total portfolio.
Conclusion: Protection First, Profit Second
Our priority at AURA is protecting the client's capital above all. Profits come as a natural result of staying in the game as long as possible.