# Risk Management

## Risk Management 101

In reality, EzAlgo is just a statistical advantage. Past performance does not guarantee future results, however it gives a good idea of what is to come. 

When entering trades with EzAlgo, you should not risk more than 2-4% of your portfolio on a single trade when following good risk management. 

For example, if you have $1,000 in your account, you would risk no more than $20 to $40 per trade. By taking smaller risks, you can prevent your account from being wiped out by one or two losing trades. Taking excessive risk can be hazardous and negatively impact your long-term profits. 

*"Respect your money or it will find a new owner."*

For more information, please see our Risk Management section under Education:

{% content-ref url="/pages/lB2sBFqAD0uCSs4mCfHC" %}
[Risk Management](/education/risk-management.md)
{% endcontent-ref %}


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