It helps reduce the amount of money you lose in a trade by preventing you from going in too strong.
Knowing your appetite for risk helps you invest in a way that suits your goals, timeline and personality.
Manage your risk and you wont blow your account. Sounds like a win win!
Understanding how much risk you're going to take will allow yourself to avoid unexpected losses.
This calculator will help you evaluate how much you should be willing to risk in each trade. You're bound to see results in your trading if you use it the RIGHT way.