Learning path: Risk & execution
Plan a trade in a traceable way before you enter. 6 steps from “Limit risk per trade” to “Keeping a trading journal”.
Level: Beginner · 6 steps
Prerequisite: Start trading
What you will learn
- Set your loss limit and stop in advance
- Derive position size from risk
- Weigh reward against risk
The steps
- Limit risk per trade: The 1–2% rule and its limits
- Setting a stop-loss: Where a stop makes sense
- Calculating position size: From risk to size
- Risk-reward ratio: Weighing reward against risk
- Correlations: When several trades carry the same risk
- Keeping a trading journal: Make decisions traceable