Trailing stop adjusts as price moves in your favor, locking profits while reducing downside.

Set a predetermined exit price to limit losses. It can be a fixed percentage or technical level.

Risk-reward ratio = (Target – Entry) ÷ (Entry – Stop Loss). A 2:1 ratio means you risk ₹1 to make ₹2.

Use stop-loss orders, diversify, and limit each trade risk to 1–2% of your capital. Risk management is essential for survival.

The risk-reward ratio compares the potential profit of a trade to its potential loss, helping traders assess trade viability.

Systematic risk is the risk inherent to the entire market or market segment, which cannot be diversified away.

Unsystematic risk is specific to a company or industry and can be reduced through diversification.

Risk management involves setting rules and strategies to minimize potential losses, such as stop-losses or portfolio diversification.