HomeLearn to TradeAxi AcademyShare Trading Fundamentals

Share Trading Fundamentals

6. Using risk management in share trading

While share CFD trading is potentially profitable, risk management strategies are crucial.

 

  • Using stop-loss and take-profit orders to protect against emotion and greed
  • Using money management to limit risk per trade  
  • Diversifying capital across different shares
  • Avoid excessive leverage 

 

Psychology is also crucial for staying disciplined, avoiding impulsive decisions, and managing expectations. Focusing on long-term consistency is essential. Find out more about Risk Management in Axi’s Risk Management course.

Quiz

1/1

Why is diversification important in share trading?

© 2026