Risk Management Tips

The only rule that matters

Survival. You cannot compound an account you blew up. Every decision — position size, stop placement, correlation, leverage — should be filtered through "does this protect me from a catastrophic loss?"

Position sizing

Decide your max loss per trade as a percentage of account equity — 1% is a healthy default for swing trades. Given your entry and your stop, that max loss defines the number of shares/contracts. Not the other way around.

Never size a trade based on "how much I want to make." Always size based on "how much I can lose if I am wrong."

Stops and exits

Place stops at structural levels (below prior support, outside the ATR envelope) — not at round numbers. If the stop is "too far," the position is too large, not the stop.

Have a plan for the winning case too. Pre-define where you trim, where you trail, and where you fully exit. Decisions made in P&L excitement are usually bad ones.