Effective risk management is essential, even before planning a trade. Correct position sizing plays a critical role in this process. Many new traders overlook this fundamental principle and consequently face significant losses. In this short video, I explain how to apply it effectively.

The principle of not putting all your eggs in one basket may sound cliché, but it remains a vital element of stock investing. Diversification can serve as a safeguard if the market moves against you.

Always plan your trade and trade your plan to minimize emotional decision-making and maintain discipline in your trading strategy.