Can anyone give me advice on money risk management?

<p id="isPasted">For past 8 years and so, I've survived in ups and down in the market. (Forex and stocks). So, I cann share my thoughts. Might be useful for you.</p><ol><li>​Trade plan is must( entry and exit should to be planned before entering a trade).</li><li>​Follow money management stricltly.</li><li>​Always manage your position so that you close it in profit at the end.</li><li>​Always risk only which you can affort.</li><li>​Don't invest all your money in a single script( diversify it ).</li><li>Consistency is a key.</li><li>Make small profits. And do it again and again and again.</li><li>Note your profit and loss in an excel for at least 3 months and verify it whats wrong or what should to be changed.</li><li>​Find your edge.</li></ol><p>Lets say you are willing to give only 2k in a trade and you want to short a pair(example) and your margin gives you 100 shares to short .</p><p>​There are two ways to enter a trade</p><ul><li>on current price</li><li>on limit price</li></ul><p>​I mainly prefer limit price since it is good for intraday and it supports my money management policy.</p><p>I mainly divide the trade into 2 parts or even more .</p><p>​Lets says you enter in 200 price. Place 50 share here and stops are fixed according to money mangement.</p><p>​When price travels in your favor add the next 50 shares in the retracement and place the stops of both the trades in the 1st trade position . so your risk is limited and you have utilized your margin fully. and when target hits get out from the trade or trail the stops as the market rides in your favour . the rule applied here( ride the trend).</p><p>​So lets say in opposite. You entered at 200 with 50 shares for short but prices goes up . so you are going to get loss for only 50 shares. The rule applied here (cut loss quickly ). follow this and you will be profitable .</p><p>​But not only this way of approach will make you to be a profitable trader . selecting a stock to trade is difficult in intraday . master it soon&nbsp;</p>

<p id="isPasted">Money risk management is a process of identifying, assessing, and mitigating risks that could negatively impact your finances. Effective risk management is crucial for protecting your assets and reaching your financial goals.&nbsp;</p><p><strong>Few steps for managing your money risk</strong></p><ul><li>Identify and assess your risks. List all potential financial risks in your life, such as job loss, unexpected medical bills, market volatility, or high debt. Evaluate the potential impact and likelihood of each one.</li><li>Define your risk tolerance. Your tolerance for risk is based on your unique financial situation, goals, and personality. The riskier the investment, the higher the potential return, but you must decide how much volatility you are comfortable with.</li><li>Choose a strategy. Decide on a plan for managing each risk. Common strategies include:</li><li>Avoidance: Avoiding activities that could expose you to risk. For example, avoid high-interest debt by not taking out new credit cards.</li><li>Reduction: Taking measures to decrease the potential severity of a risk. Diversifying your investments is a form of risk reduction.</li><li>Transfer: Shifting the cost of a potential loss to a third party. The most common example is using insurance.</li><li>Retention: Accepting the risk and its consequences yourself, typically for small, manageable risks.</li><li>Implement your strategy. Put your plan into action by setting up savings, investing with your risk tolerance in mind, purchasing insurance, and reducing high-interest debt.</li><li>Monitor and review. Your financial situation will change over time, so you should regularly review your risk management strategies and adjust them as needed. </li></ul>