Risk Management Flashcards
1
Q
How to calculate position size?
A
Risk Amount(i.e. USD value of 1% of account) divided by stop loss
2
Q
How to derisk?
A
Never move SL down, only UP depending on market structure. Don’t derisk to early as it impacts your RR plan. Only if you see MS going against you etc.
3
Q
What does a SL help with? How to set it properly?
A
Emotion control. MS, supply and demand/liquidity based concepts
4
Q
How to use TP?
A
TP at areas that make sense based upon MS.
5
Q
What does RR help with?
A
Determining if a trade is worth taking and preventing over trading. 5 RR’s absolutely worth it. 10RR without a TP is a reach.
