Risk management encompasses all rules, processes, and measures used to systematically identify, assess, control, and monitor risks in trading and investment management.
In active trading, this includes position sizing, stop-loss placement, limiting maximum loss per trade and per day, and controlling overall account exposure.
In wealth management, risk management extends to diversification, monitoring of market, credit, and liquidity risks, as well as scenario analysis and stress testing.
Professional risk management is what separates sustainable long-term performance from short-lived success. It forms the foundation of every responsible investment approach and is an integral part of trading strategies at DEECKE Financial Solutions.
