What is Poor Risk Management? Charlie Burton, trader and educator comments. You once said ‘We’ve seen plenty of traders over the years make huge returns on their accounts, well over 1000 per cent in a relatively short period of time, but as soon as they hit a drawdown period they just as quickly give it all back. This is because they were trading well beyond risk limits in the first place.” How to handle drawdowns? Poor risk management would be anything risking 2 or 3% on any trade - and also doubling up. Poor risk management is more like gambling
