Risk Management
How to size a position, place a stop, manage leverage and survive gaps - the decisions that determine what a trade can cost you.
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How to Build a Trading Risk Management Plan
How to build a trading risk management plan: the six rules it needs, what each one protects against, a filled-in example for a $5,000 account, and why the plan has...
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Types of Trading Risk: Market, Liquidity, Volatility and Counterparty
The types of risk in trading explained — market, liquidity, volatility, gap, leverage, counterparty and operational — with what each looks like on a CFD account and which control addresses...
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How Correlated Positions Increase Portfolio Risk
How correlated positions increase risk: why three trades can be one bet, the currency and index overlaps that hide it, and how to size the group rather than the trade....
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What Is Drawdown in Trading?
Drawdown explained: how it is measured from peak to trough, why maximum drawdown is the number that matters, and the recovery table showing why a 50% loss needs a 100%...
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Risk-to-Reward Ratio: How It Is Calculated and What It Means
Risk-to-reward ratio explained: how it is calculated from the stop and the target, why a high ratio can still lose money, and the one table that shows the win rate...
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Gap Risk: Weekend Gaps, News Gaps and Stop-Loss Execution
Gap risk explained: why prices reopen away from where they closed, why a stop-loss fills past its level in a gap, which markets gap most, and how to size positions...
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Risk Management in Trading: A Complete Guide
Risk management in trading explained as a system: position size, stop placement, leverage, correlation and gaps, with one account followed through each. The pillar guide for the Risk Management section....
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How Leverage Increases Trading Risk
How leverage increases trading risk, shown with one account and one price move at three leverage levels: what changes, what does not, and how far a position is from stop-out....
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Stop-Loss Orders: Types, Placement and Why They Are Not Guaranteed
Stop-loss orders explained: the types available on MT5, the three ways traders decide where to place one, and exactly why a stop limits the instruction rather than the price. A...
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Position Sizing: How Trading Exposure Is Calculated
Position sizing explained with the formula and three worked examples: how account size, risk per trade and stop distance decide the lot size, and why the same stop can be...