Free lessons › Risk Management & Position Sizing
Risk Management & Position Sizing: The skill that keeps you in the game.
Risk per trade, position sizing, R-multiples, expectancy, stop discipline, max daily loss, scaling rules, partial exits, and trailing stops. This is the most important track in the academy.
Difficulty: Beginner · 9 lessons · about 1.4 hours
Who it's for
New traders who want a clear, step-by-step foundation. Core principle: Survival is the prerequisite for profitability. Defense compounds.
What you'll learn
The Math of Risk
- Risk per trade — the 1R framework — free: Why pros size in R, not dollars.
- Position sizing formula — free: Account × risk% / (entry - stop).
- Expectancy & win rate trade-off: How a 40% win rate can crush a 70% one.
Daily Discipline
- Max daily loss rules: Hard stops before you become irrational.
- Stop discipline (sacred stops): Why moving a stop is the #1 account killer.
- Scaling out — partial exits: Locking risk-free runners.
- Trailing stop strategies: Structure-based vs. ATR-based trailing.
Drills
- Drill: -1R then sit for 3 bars: Reset discipline after every loss.
- Quiz: Size 5 hypothetical trades: Calculate position size live.