Let's talk about something more important than any indicator: money management.
I don't care how good my strategy is; without a solid system to manage risk, I am just gambling. I've been documenting my own trading journey and wanted to share the exact four-pillar framework I use to protect my capital. This isn't theory—it's what I actually follow on every single trade.
The 4 Components of My System:
Risk Per Trade: The fixed % of my account I'm willing to lose on one idea is, for now, between 0.5% and 1%.
Total Open Risk: My cap on total exposure from all running trades, I prefer a max of 3% but giving myself the space to a maximum of 6%.
Risk-to-Reward Ratio: My non-negotiable minimum filter for every setup is the golden 1:2. To tell you the truth, now when I see a trade that forces me to 1:2, I get annoyed. The trading plan that I am working on now gives me greater opportunities. Therefore, 1:2 is really my bare minimum.
Dynamic Position Sizing: How I calculate my lot size based on my stop loss.
My goal is to stay in the game as much as possible and work on the accumulation effect. This system is so simple and practical that it keeps me disciplined and stops me from blowing up an account on one bad trade or a volatile news event.
I'm curious—what's the #1 rule in your money management system? Drop a comment below. Let's learn from each other.
I don't care how good my strategy is; without a solid system to manage risk, I am just gambling. I've been documenting my own trading journey and wanted to share the exact four-pillar framework I use to protect my capital. This isn't theory—it's what I actually follow on every single trade.
The 4 Components of My System:
Risk Per Trade: The fixed % of my account I'm willing to lose on one idea is, for now, between 0.5% and 1%.
Total Open Risk: My cap on total exposure from all running trades, I prefer a max of 3% but giving myself the space to a maximum of 6%.
Risk-to-Reward Ratio: My non-negotiable minimum filter for every setup is the golden 1:2. To tell you the truth, now when I see a trade that forces me to 1:2, I get annoyed. The trading plan that I am working on now gives me greater opportunities. Therefore, 1:2 is really my bare minimum.
Dynamic Position Sizing: How I calculate my lot size based on my stop loss.
My goal is to stay in the game as much as possible and work on the accumulation effect. This system is so simple and practical that it keeps me disciplined and stops me from blowing up an account on one bad trade or a volatile news event.
I'm curious—what's the #1 rule in your money management system? Drop a comment below. Let's learn from each other.
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Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.
Bài đăng liên quan
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.