Risk in Trading

#3
Only way to manage risk is not taking that much risks which we cannot afford to lose. Yes 1-2% risk is acceptable however if we do not know trading then first we have to learn this skill before risking our capital.
 
#4
Risk management is a part of the trading system that tells you how many lots to hold at a given moment and how much risk to take. In other words, risk management is managing the size of the transaction. More lot means more risk