Risk Management

Overview

Strategy means little without risk control. Position sizing decides how much to risk per trade, and rules like the 2 percent rule cap the damage any single loss can do to your capital.

Key takeaways

• Decide your maximum loss per trade before you enter.
• The 2 percent rule limits risk on any one trade to 2 percent of your capital.
• Position size follows from your stop distance, not from gut feel.
• Surviving losing streaks matters more than any single winning trade.

For education only. Not investment advice.