Learn · Risk Management
Risk & Psychology
Sizing, stops, and the mindset to stay consistent under pressure. This is where most traders fail — and where your real edge is built.
Position Sizing
Position sizing is the most important risk management tool you have. It determines how much money you put at risk on each trade. Get this wrong and no strategy can save you.
1%
Conservative
Recommended for beginners. Survive long losing streaks.
2%
Standard
Common for experienced traders with a proven edge.
3-5%
Aggressive
Only for very confident setups. High drawdown risk.
10%+
Gambling
This is not trading. A few losses will destroy your account.
Quick Position Size Calculator
Risk $
$100.00
Pips
50
Units
20,000
The 1% Rule
Never risk more than 1% of your account on a single trade. This is the golden rule of survival.
Why 1% works
- 10 consecutive losses = only 10% drawdown
- 20 consecutive losses = only 18% drawdown
- You can afford to be wrong many times and still survive
At 10% risk per trade
- 3 losses = 30% account gone
- 5 losses = account effectively blown
- Emotional spiral makes recovery nearly impossible