You might enter with excellent analysis…
But without capital management = certain loss.
The analysis tells you when to enter
Capital management protects you if the analysis is wrong
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1️⃣ The golden risk principle (Rule of Risk)
📌 Do not risk more than 1% – 2% in a single trade.
Example:
• Your capital = 1000$
• Risk = 1%
• Maximum loss = 10$ only
Even if you lose 10 consecutive trades → your account is still alive ✅
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2️⃣ Stop Loss
Stop Loss:
• Not a failure
• But a protection for the account
Where do we put SL?
• Below the last low (when buying)
• Above the last peak (when selling)
• Behind real support/resistance
❌ Don't place SL randomly
❌ Don't move SL without reason
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3️⃣ Position Size
:
Position Size = (Risk Value) ÷ (Distance to Stop Loss)
Practical example:
• Capital = $1000
• Risk = $10
• SL far 2%
➡️ Position size = $500
📌 So if SL hits, you only lose $10.
⸻
4️⃣ Risk : Reward ratio
Minimum acceptable percentage:
✅ 1 : 2
means:
• You risk $10
• You earn $20 or more
Best ratios:
• 1 : 3
• 1 : 4
📌 If you succeed in 4 trades out of 10 — you remain profitable.
⸻
5️⃣ Scaling Out
Instead of one target:
• TP1 = 50% of the trade
• TP2 = 30%
• TP3 = 20%
✅ Reduces psychological pressure
✅ locks in profits
✅ Keeps you comfortable in the trade
⸻
6️⃣ The most dangerous capital management mistakes
❌ High leverage without calculation
❌ Entering with all the capital
❌ Doubling the contract after a loss
❌ Revenge against the market
This is the fastest way to clear the account.
⸻
🔥 Full example of a correct trade:
• Risk 1%
• Clear SL
• RR = 1:3
• Calculated position size
• Commitment to the plan
➡️ This is real professional trading.
⸻
✅ Summary of the lesson:
• Protect your account before thinking about winning
• Small loss = survival
• Survival = profits in the medium term
Profit is not in one trade… profit is in continuity.
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