Risk management is essential in trading as it helps protecting trader`s capital and ensures long-term success. By carefully controlling how much the trader is willing to risk on each trade, it aims to avoid emotional decisions and limit potential losses.

Strong risk management strategy keeps the trading balanced and prevents significant setbacks from wiping out the progress.

Tools like the TradeLocker Risk Management Calculator simplify this process by automatically calculating the correct position size based on the risk tolerance and stop-loss settings.

By setting your stop-loss (SL) price and defining how much you’re willing to risk per trade, the calculator automatically adjusts the order size to fit your risk tolerance. This helps traders stay disciplined and avoid emotional decision-making. It’s easy to use: simply input your SL price and risk amount, adjust if needed, and execute the trade.

For further explanation see the video below.