RISK MANAGEMENT

Risk management, also known as financial management, refers to a number of trading techniques used to reduce the risk of loss. Influenced by various factors, thus protecting your account against adverse price fluctuations, is an important part of a trading strategy.
Potential profit and loss can be set through Stop Loss and Take Profit levels.
Stop Loss and Take Profit are orders to close a position when the price touches a certain predefined level. Stop loss or Take Profit levels can be identified in various ways of analysis:

1. Support and resistance: for short positions, the stop loss is usually set just above the resistance level, while long positions often have the stop loss set slightly below the support level.
2. Trend lines and channels: stop loss prices are generally set outside the channel, above or below the trend line.

It's important to remember that the price of each pip depends on how you trade and the volume of your position. Keep in mind, however, that neither stop loss nor take profit can be guaranteed: When the market experiences volatility or during a price gap, your order may be executed at a different price than expected.