Position Sizing in Trading: A Practical Risk Guide
Learn position sizing in trading with a clear risk formula, worked examples, stop-loss planning, and a repeatable checklist for protecting capital.
Learn position sizing in trading with a clear risk formula, worked examples, stop-loss planning, and a repeatable checklist for protecting capital.
My EUR/USD trade journal reviews a 5-pip loss after an FVG retest buy and why the stop belonged below the protected candle low.
Learn how traders can define risk appetite through position size, loss limits, total exposure, drawdown rules, and a written risk statement.
My GBP/USD trade journal reviews a forced sell that lost 9.7 pips and the discipline lesson I learned from trading without a valid setup.
Learn how maximum drawdown is calculated, what it reveals about trading risk, and how position sizing, loss limits, and review rules can control it.
My EUR/USD trade journal from July 29: a bearish breakout entry without a pullback, FOMC event risk and a recorded 1R loss.
Learn how a trailing stop loss works, how it differs from fixed and stop-limit orders, and how to use it without letting normal volatility force an early exit.
My GBP/USD trade journal from July 28: a counter-trend fair value gap buy outside the session, a 1R loss and lessons on timing.
Build trading discipline with clear risk limits, a pre-trade checklist, cooldown rules, journaling, and a weekly process review you can repeat.
My NDX100 trade journal from July 27: bearish daily context, four-hour FVG rejection, a continuation sell and a recorded 2R win.