Risk & Position Sizing
Learn how to protect your capital, size positions correctly, and survive long enough for your edge to play out.
Track your progress
Lessons are free to read. Sign in to save completion and pick up where you left off.
Lessons
Why Risk Management Matters
Why surviving drawdowns matters more than finding a perfect setup — risk of ruin, blow-ups, and giving your edge time to work.
Position Sizing Basics
Learn to size positions from dollar risk and stop distance so each trade risks a fixed percent of equity — not a guess.
Stop Losses That Make Sense
Place stops beyond structural invalidation — not at arbitrary percentages or mental levels that fail under pressure.
Risk-Reward Ratios
Understand R-multiples and risk-reward math: why 1:2 changes the win rate you need and how asymmetric payoffs work.
Max Drawdown
Understand max drawdown as peak-to-trough equity decline, why recovery math is brutal, and how to keep drawdowns survivable.
Avoiding Revenge Trading
Recognize the revenge-trading spiral after a loss and use cool-downs, daily loss limits, and rules that stop one loss from becoming five.
FOMO & Overtrading
Learn to spot FOMO and overtrading — chasing pumps, too many low-quality trades, and how to favor process over dopamine.