When trading there are rules to observe in other to protect your margin, it's more like if you can't make more money, don't lose the one you have,
That's where risk management comes in handy.
The strategies are;
_ Don't risk too much money, start with what you can afford to risk. Focus on the risk not rewards.
_ Identify potential risk as;if it goes down, if you don't take profit, if you don't use stop loss and if the coin goes against your analysis.
_ Reacting to risk, use stop loss and always take profit.
One of my favorite topics is trading. I would like to start my point of view with a golden principle in trading you can relate to risk management "
Not losing is also profit taking". So Risk management is under your strategy skills, in a few words you can say
ABC "
Always Be Careful" you have to manage your trade for the risk management on a basic level, if we start moving from there to some advanced level first thing is Stop loss, then Take profit. In my view, if a person holds a strong grip on these terms he is one good trader because it covers a lot of terms in trading as
risk management, emotion control, Confident (I think this I partial emotion) etc etc. Op your title is itself a Book and your content from that point is too miniature,
1 = Funds Control (Management), 2 = Risk Identification 3= Actions As you've mentioned these terms can be considered as one of the base classes in Riskmanagemnt Iw ould like to add more phases in between there.
⚫ Risk Assessment (After Identification)
⚫ Risk Mitigation (Before Action).
⚫ Risk Tolerance (Before Action & After Mitigraition)
⚫ Risk Review (After Mitigation and Monitoring).
⚫ Risk Avoidance (Advanced Analysis).
You can that this is your Intelligence support. Hope so I have added something new to your database
-Hamza