Risk Management
Position sizing, drawdown arithmetic and invalidation — the part of trading that decides whether you are still here in a year.
Part of the course
Risk Management
Position sizing, loss limits and invalidation — the part of trading that decides whether you are still here in a year. Taught before entries, deliberately.
Why Risk Comes First
A 50% drawdown requires a 100% gain to recover. That asymmetry is why risk management is not the defensive part of trading — it is the part that determines whether any edge you have ever gets to compound.
8 min read
Position Sizing Explained
Position size is derived, not chosen. Once you fix a risk percentage and a stop level, the number of units is arithmetic — and any deviation from it is a decision to take more risk than you said you would.
9 min read
Stop-Losses and Invalidation
A stop belongs where your idea stops being true, not where your discomfort starts. Placing it by feel converts a defined risk into an arbitrary one and guarantees you are stopped out by noise.
8 min read