Trades can prevent large drawdowns in their capital and limit possible losses by putting stop loss orders in place. Managing risk in color trading not only entails placingroally rummy stop loss orders but also giving careful thought to position sizing. Depending on their risk tolerance & the possible impact on their entire portfolio, traders should assess the right position size for each trade. Traders can minimize potential losses & prevent overexposure to the market by exercising caution when sizing their positions.
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