Risk Management is the answer

Risk management is the key basis for a trader’s profitability. It should be studied and tested to understand how exactly you should act in the market in order not only to save your money, but also to increase your capital.
 
It’s not easy to come up with an efficient risk management strategy until you are well-versed with risks. So, take a few small trades to clear your doubts about trading and risks. I am not showing you a way to avoid losses but the way to stop the bigger ones that may result in the future because you had only read about risks and how to build a strategy to manage risks but have no experience to back your strategy.
 
I would question anyone who claims to be 100% confident on a trade based on probabilities. But I agree, even 99% should still be adhering to good risk management.
 
All we've got, comes down to risk management.... that's our edge, as active traders.

I favor a 'many small trades, tiny stops' approach since you're giving yourself more chances to get it right.

My average scalping daytrading stop loss cost is <$50, for example 400 shares with a .07 trailing or hard stop is very common.

Swingtrading may be up to a few hundred $ stop, eg 100 shares with $2 stop loss.
 
KCalhoun said:
All we've got, comes down to risk management.... that's our edge, as active traders.

I favor a 'many small trades, tiny stops' approach since you're giving yourself more chances to get it right.

My average scalping daytrading stop loss cost is <$50, for example 400 shares with a .07 trailing or hard stop is very common.

Swingtrading may be up to a few hundred $ stop, eg 100 shares with $2 stop loss.
More...

Gold!
 
Neglecting risk management is the one of the most common reasons why many traders fail in the forex market. Many traders think the stop loss is cutting down their profits and limiting it but one should understand that it is better to have something than to have nothing.
 
Risk management is the process of predetermining the level of risk intact with a particular trade. Only after knowing the level of risk exist make your trading decision, that's what I do atleast.
 
Risk management aids in the reduction of losses. It can also help to keep traders accounts from losing all of their funds. It is a method for traders to identify, measure, and analyze risk for various trading decisions before deciding whether to accept or mitigate it.


 
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