Risk Management
Risk of Ruin in Trading: The Maths of Blowing an Account
Risk of ruin is the chance your account hits a set loss before you reach your goal. See how risk per trade, win rate and reward-to-risk drive it.
Category
Risk Management
Position sizing, stop losses and protecting your capital.
Risk Management
The 1% Rule in Trading: What It Is and Why It Works
The 1% rule in trading caps the loss on any trade at 1% of your account. Why it survives losing streaks, how to size lots from it and when 0.5% is better.
Risk Management
Currency Correlation: How to Avoid Doubling Your Risk
Currency correlation explained: what the coefficient means, why pairs move together, and how to count your net exposure so three trades are not one bet.
Risk Management
Drawdown in Trading: What It Is and How to Recover From It
Drawdown in trading explained: peak to trough, maximum and relative drawdown, the recovery maths, normal ranges by risk, and a plan for getting back.
Risk Management
Forex Risk Management: The Complete Guide
Forex risk management in layers: risk per trade, stops, position size, reward-to-risk, open risk, loss limits, leverage and drawdown maths.
Risk Management
How to Write a Trading Plan (With a Free Template)
How to write a trading plan on one page: the ten sections, a filled-in forex example, a free template, and how to test and revise it each month.
Risk Management
Position Sizing in Forex: How to Calculate Your Lot Size
Position sizing in forex, step by step: the lot size formula, pip values for dollar, yen and cross pairs, rounding, margin checks and worked examples.
Risk Management
Risk-Reward Ratio Explained: Why Win Rate Isn't Everything
The risk reward ratio compares what a trade could make with what it risks. Learn R multiples, break-even win rates, expectancy and how costs change it.
Risk Management
Trading Expectancy: The Number That Says If a Strategy Works
Trading expectancy is your average result per trade. Learn the formula in R, how costs and sample size change it, and how to measure it from your journal.
Risk Management
Trailing Stop Loss: How It Works and When to Use It
A trailing stop loss follows price as a trade gains. Learn fixed, break-even, structure and ATR trails, the trade-offs, and when not to trail at all.
Risk Management
Where to Place a Stop Loss: A Practical Guide
Where to place a stop loss: beyond the price that proves your trade wrong, plus a buffer. Structural, ATR and trailing stops explained with examples.