No matter how accurate a trading strategy is, without proper risk management, a trader is destined to fail. Risk management involves determining how much of one’s capital is at risk in each trade and setting appropriate stop-loss and take-profit levels. Most professionals recommend risking no more than 1-2% of capital per trade. This ensures that a series of losses won’t wipe out the account. Consistent risk management helps preserve capital, allowing traders to survive losing streaks and stay in the game long enough to be profitable.
Source:- https://mrwallstreets.com/blog..../Long-term-investmen