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Traders – Here’s How to Win More: 9 Risk Rules that’ll Help You Profit


9 Risk Rules that’ll Help You Profit

You and I can agree that losing money sucks. On the flip side, making money is pretty sweet. Closing a trade in profit is a good feeling. 

Something you’ll also know is that not every trade is going to be a success. In fact, professional technical traders aren’t ashamed to admit that their trade success rate is barely over 50% – meaning they only just win more than they lose.

So how do they make a good profit? 

They have a clear set of risk rules that they follow to a T. You can do the same if you wrestle your risk under control and start trading with more care. 

Start today. Here are the 9 risk rules that you need to improve your trading.

Use stops

Stop losses will prevent you from losing more than you should. Every trade should have stops on. No exceptions. 

Place your stops at invalidation – a level that you know your trade idea was wrong. If it hits, you’re protected from further loss. 

Take losses

As a trader you have to be ready to take losses. Every trader does. 

Taking your losses allows you to take smaller, more calculated losses that don’t add up to wipe your trading account. If you’re too afraid to close at a loss you’ll end up with nothing. 

Take only the best set ups

Don’t force it. Only take the trades that you know are going to win. They aren’t all going to of course, but the stronger the set up looks the lower your loss percentage is going to be. 

Position size

Don’t over trade. Scale your position size based on the risk of the trade. If your stop is going to be quite far away, your position shouldn’t be so big. 


Turn it down. Don’t be crazy. As a trader you’re going to either make money over time, or blow out your trading account and be left with nothing. Don’t be the latter – follow your risk rules. Turn your leverage down and earn gradually. Compounding will quickly take you where you want to be. 

Exit strategy 

Every time you enter a trade you should have an exit strategy planned. This will tell you exactly where you’re going to take profit. Getting out a profitable trade is harder than you think when you’re new. 

Make sure you get out and cash in your winners, otherwise you won’t have any winners at all. 

Trade management 

All traders manage their trades differently so you’ll have to figure this out for yourself. Some prefer to place their trade and then leave it untouched. Others are great at changing their stops and targets mid-trade. Find out which trader you are and stick to it. 


If you’re funding with cryptocurrency, be aware that your margin can decrease and negatively affect your trade, potentially resulting in liquidation. It’s something to keep in mind. 


The summary of all risk rules is discipline. Have a plan and stick to it. You know what works for you and what doesn’t, so don’t start messing around and trying to get lucky. That’s how you end up losing money. 

Back to trading

That’s it. Those are my 9 risk rules that can help you win more and start making more money. When it comes down to it, it’s all about cutting the losses short and letting the winners hit their targets.

With that said, don’t be afraid to close a trade early if the situation has changed. If the original set up isn’t still in place and you aren’t happy with the current trade, closing early could be the best thing to do.

For more guides on The Daily Chain like this Risk Rules article click here.

About Alex Aves

Alex is a crypto enthusiast that has been enthralled with the crypto space for over two years now. He currently works in the marketing team for Liquid, one of the leading crpytocurrency exchanges. Alex is passionate about spreading knowledge, introducing more legitimacy to crypto and stopping traders from losing money. If you reduce your losses, your profits will grow.

Alex Aves
Cryptocurrency Writer

You can follow Alex on Twitter here.

The Daily Chain
Inform. Educate. Succeed

Alex Aves
Alex is a crypto enthusiast that has been enthralled with the crypto space for over two years now. He currently works in the marketing team for Liquid, one of the leading crpytocurrency exchanges.

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