Academy course
Risk management
Position sizing, stop placement and the arithmetic of drawdowns — the part of trading that keeps you in the game.
Beginner4 lessonsabout 16 min of reading8-question quiz
Lessons
- ✓Lesson 1Why risk management comes firstUnderstand why the amount you risk on each trade matters more than any single entry, and how a fixed percentage limit protects your account.4 min
- ✓Lesson 2Position sizing step by stepCalculate a position size in lots from your account balance, risk percentage, stop distance and pip value, with worked EUR/USD and USD/JPY examples.4 min
- ✓Lesson 3Stop-loss and take-profit placementPlace stops based on market structure and volatility, set targets with a clear risk-reward ratio, and know the win rate that ratio needs to break even.4 min
- ✓Lesson 4Drawdowns and recovery mathsCalculate the gain needed to recover from a drawdown, expect realistic losing streaks, and set daily and weekly loss limits that protect your account.4 min