The importance of practising good risk management can never be emphasised strongly enough. When trading you are bound to face risks as there are so many uncertainties, and several factors which could impact what will happen. Hence, your best tool to do well is to have good risk management. You need to set certain risk levels that are appropriate for you and you need a proper plan that will allow you to deal with any event in a relatively safe manner.

Is your trading account suffering? Feeling overwhelmed, frustrated, and ready to give up on trading? Well, today's lesson, if properly understood and applied, can quite possibly provide you with the knowledge you need to literally save your trading account and start rebuilding it.

Some people say that 90 to 95% of people who trade money in the markets or "speculate" in the markets end up failing over time. While there can be a number of reasons for this mass failure, the primary one that lies behind all the others is typically a lack of risk management skills. Traders often don't even realize how important and powerful risk management can be.