How To Become A Smart Trader | Trading For Beginners | Risk Management Trading

Nowadays, 90% of the traders who are making losses in trading are working hard. They are not working smart because they learn all kinds of indicators. Learn all the strategies, learn price action, learn SMC, learn ICT. That means they know everything but do nothing properly. His situation is that of Jack of all and Master of

none. Whereas in trading, if you want to earn, you will have to master one thing. So in today's video I will tell you what are the three things on which you can focus and do smart work instead of hard work in trading. So to become a smart trader or to work smart in trading, the

first thing you have to learn is risk management. I always say that strategy is only 20% of the work in trading. The remaining 80% is risk management. But why is this so? Let me explain with an example. Suppose you started trading with ₹10,000 and you make a profit of 50% in every trade and

you make profit six times in a row. So first of all 10,000 will become 15,000. Then ₹15,000 becomes ₹ 22,500, then ₹33,750, then ₹50,65, then ₹75,937 and in the sixth time your ₹1,000 will have become ₹1,13,905. Now let me make it clear that this is just an example. So take this as an example.

This will not happen practically. But I am giving you this example so that you can understand the key of risk management. So you started with 10,000. You made profits six times in a row and your ₹ 10,000 became ₹1,13,000. But if after this you suffer losses four times in a row and that loss is also of 50%, then the

first loss of ₹1,13,000 will become ₹ 56,500. In the second loss it will become 28,250. In the third loss you will be left with ₹14125 and in the fourth loss you will be left with ₹762. That means you started with ₹10,000. You made a profit six out of 10 times, but after the losses you incurred the remaining four times, you are left with Rs