Lesson 4: Risk Management & Trading Discipline

Lesson Overview
Successful stock traders focus on protecting capital before chasing profits.

Risk Management Principles
Position sizing
Stop-loss usage
Diversification

Trading Psychology
Managing emotions
Avoiding impulsive decisions
Staying consistent

Common Beginner Mistakes
Overtrading
Ignoring risk rules
Chasing hot stocks

Key Takeaway
Discipline and risk control are more important than predicting the market.