Intermediate English · HinglishFree
Risk Management & Trading Psychology
Size risk before return, understand your numbers and catch your own biases.
- 5
- Lessons
- 3
- Chapters
- 8
- Diagrams
- 25
- Practice questions
- 50 min
- Time
What you'll be able to do
- Decide the loss you accept before entering
- Work out quantity from a stop
- Read win rate, reward-to-risk and drawdown together
- Name the bias behind a bad decision
Course syllabus
Every lesson has worked examples, diagrams, key terms, common mistakes and a practice check.
- 1
Chapter 1
Risk comes first
Think in Risk Before Reward 10 min
Professionals ask 'how much can I lose?' before 'how much can I make?'. That single habit keeps them in the game.
Position Size and Stop-Loss 10 min
Your stop decides your size, not the other way round. One formula keeps every trade's risk the same.
- 2
Chapter 2
Your numbers
Drawdown and Expectancy 10 min
A strategy is good only if its numbers are positive over many trades, and if you can survive its worst stretch.
- 3
Chapter 3
Your mind
The Biases That Cost Traders Money 10 min
Your brain wasn't built for markets. Name the biases and you can build rules around them.
The Trading Journal 10 min
A journal turns random experience into lessons. Log every trade, review weekly, change one thing at a time.
A look inside: “Think in Risk Before Reward”
In this lesson you will
- Explain why survival comes first
- Use the 1% rule
- Calculate risk-reward before a trade
After a 50% loss you need a 100% gain just to get back to where you started. This is why limiting losses matters more than chasing big wins.
- Risk per trade
- Money lost if the stop-loss is hit.
- 1% rule
- Never risk more than about 1% of capital on one trade.
- Risk-reward
- Potential gain divided by potential loss.