01
What Is Risk Management?
Risk management is the process of controlling how much can be lost on one trade and across a sequence of trades. It helps keep one mistake from becoming an account-threatening problem.
Learning track 03
Risk & Psychology
Trading is not only about entries. Learn how position sizing, drawdown, discipline and emotional decision-making shape long-term trader development.
7 published lessonsEvergreen educationFree to read
Topics in this track
Risk managementPosition sizingRisk per tradeRisk-to-rewardDrawdownLosing streaksDisciplineFOMORevenge tradingOvertradingPatienceJournaling
Lessons
Explore Risk & Psychology
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02
Position Sizing
Position sizing converts your planned dollar risk and stop distance into the amount you should trade. The correct lot size comes after the risk decision, not before it.
03
Risk per Trade and Risk-to-Reward
Risk per trade defines the planned dollar loss if the idea fails. Risk-to-reward compares that planned loss with the potential gain being considered.
04
Drawdown, Losing Streaks and Risk of Ruin
Drawdown measures the decline from a previous equity peak. Large drawdowns become progressively harder to recover from, which is why risk control matters across losing streaks.
05
FOMO, Revenge Trading and Overtrading
FOMO, revenge trading and overtrading are different expressions of the same problem: emotion taking control of the trading process.
06
Trading Discipline, Patience and Confidence
Discipline means following the process. Patience means waiting for conditions. Confidence means acting without needing certainty.
07
Trading Journaling and Review
A trading journal records the decision, context and process behind a trade so that repeated strengths and mistakes become easier to identify.