Level 5 of 6

Local: Risk and Survival

13 lessons. 0 of 13 published so far; the rest are being written.

1. 1Why most traders failOutline

   Risk management, not bad entries

2. 2Risk per tradeOutline

   Fixed dollar amount or percentage of the account

3. 3Stop placementOutline

   Where the idea is wrong, not a random dollar amount

4. 4Position sizingOutline

   Contracts from stop distance and tick value (20-point MNQ stop = $40 per contract)

5. 5Risk-to-rewardOutline

   What you could lose vs. what you could make

6. 6Win rate and expectancyOutline

   Why 40% can win and 70% can lose

7. 7Daily loss limitsOutline

   Max loss and max trades per day; what to do when hit

8. 8Drawdown mathOutline

   A 50% loss needs a 100% gain to recover

9. 9Scaling upOutline

   Stay in micros until the process works, then step up gradually

10. 10Overnight and news riskOutline

    Gaps, holding through events, flat is a position

11. 11How prop evaluations workOutline

    Profit targets, trailing drawdowns, consistency rules, fees; rules vary by firm

12. 12Funded vs. personal accountsOutline

    Tradeoffs of each

13. 13Writing a risk planOutline

    A one-page plan the student actually follows