Risk Management Systems
Protect your capital and survive to trade another day
Your Progress
0 / 5 completedWhy Risk Management is Everything
Risk management is the difference between professional traders who survive decades and amateurs who blow up their accounts in months. It's not about making money—it's about not losing money.
The Brutal Math of Losses
The Three Pillars of Risk Management
Position Sizing
How much capital to risk on each trade. The single most important decision you'll make.
Stop Losses
Predefined exit points that cut losses before they become catastrophic.
Diversification
Spreading risk across uncorrelated assets to reduce portfolio volatility.
Overleveraging. Risking 10-20% per trade feels exciting until you hit a 5-trade losing streak and wipe out your entire account. Professional traders risk 0.5-2% per trade—never more.
What You'll Master
Calculate exact share quantities based on account size and risk tolerance
Fixed, trailing, and time-based stops for different market conditions
Why 3:1 R:R means you only need 30% win rate to profit
Surviving losing streaks without destroying your account
Professional Trader Mindset
"Risk management is not about avoiding losses—losses are inevitable. It's about controlling the size of losses so you survive long enough to hit the big winners. Your job is to lose small and win big."