RISK MANAGEMENT

RISK MANAGEMENT

• Handling Losses & Inevitable Drawdowns - Day 13
• 2% Risk - Never risk more than 2% per trade.
• Cutting Risk - At first loss, cut 2% risk per trade to 1% risk per trade. If consecutive losses continue, cut risk again to 0.5% per trade.
• Walking Back
• Stay at the decreased risk tier until you made back 50% of the previous risk level drawdown.
• If you lost at 2%, stay at 1% level till you've made back half of the 2% tier loss.
• If you lost at 1%, stay at 0.5% level till you've made back half of the 1% tier loss.