#Risk management very important #investing #trading #stocks $SPY $FB $AAPL

This is how I envision trading; I like to think of it as, if I get into a trade and my hands are tied behind my back, and I’m racing down an ice hill on a sled, if I don’t have the ability to react quickly to whatever might cross my path up ahead, at least I know that my position size is aligned with the amount that I’m allowed to risk, for example 2% of the entire capital of the account, etc, or a set amount of $200, $500, $1000 per position, etc.


Once you’re in the trade, lots of variables and unknowns, or things you didn’t plan for can happen. And so, this is why risk management / money management is so critical for each one of your positions.