Many traders spend years searching for a “secret” strategy that guarantees profits. But the real secret isn’t a strategy—it’s risk management. Without it, even the best trading idea can fail due to poor position sizing or uncontrolled losses.
The core principle is simple: never risk more than you can afford to lose on a single trade. A common practice is the 1% rule, which limits your exposure per trade to 1% of your account balance. This ensures that a losing streak won’t wipe out your capital.