5 Risk Management Rules Every Zambian Trader Should Follow

Risk management is the single biggest differentiator between traders who last for years and those who blow their accounts within months. These five rules apply no matter which broker or strategy you use.

1. Never risk more than 1-2% of your account per trade. This ensures that a string of losses doesn't wipe out your capital. 2. Always use a stop loss. Decide your exit before you enter the trade, not after it starts moving against you. 3. Avoid over-leveraging. Just because a broker offers 1:1000 leverage doesn't mean you should use it on every trade. 4. Keep a trading journal. Recording every trade helps you spot patterns in your mistakes and your wins. 5. Trade with money you can afford to lose. Never fund a trading account with rent money, school fees, or emergency savings.