Module 5 - Risk and Position Management
How To Protect Capital And Stay In The Game
Finding cycle lows is only part of the process.
The real skill is protecting capital while you wait, position, and manage the trade.
Most traders focus on entries.
Better traders focus on risk.
Because if you manage risk properly, you stay in the game long enough for the cycle to work.
The Aim Of This Module
This module is about three things:
• position sizing
• invalidation
• reducing exposure when the cycle changes
You do not need to be perfect.
You need to avoid large mistakes.
Risk Comes Before Reward
Before entering any trade, ask:
How much can I lose if I am wrong?
Not:
How much can I make?
This one question changes everything.
If you start with reward, you become emotional.
If you start with risk, you stay calm.
