Risk management is the most important part of trading. It is without doubt that you will lose at some point or another. No matter how good you are or how long your streak is you will lose eventually. Without proper risk management it is possible to wipe out your account without even meaning too. You don’t have to make overly risky trades, although any trading is risky. All you have to do is make a short string of losing mismanaged trades to put your account at risk. Position sizing is the pillar of a good risk management system.