Risk & Money Management: Protect Capital, Control Emotions, and Grow Consistently
1. What is Risk Management?
The controlling of potential losses in all trades.
Key objective → maintain low losses and high profits.
2. Why is it Important?
Protects trading capital
Ensures long-term survival
Manages emotions (fear and greed)
Develops predictability of outcomes
3. Core Principles
Risk per trade: Risk not exceed 1–2% of total capital.
Stop Loss: Always important to have a preset exit.
Risk–Reward Ratio: Minimum 1:2 (risk 1 to earn 2).
Position sizing: Adjust trade size based on account balance.
4. Money Management Rules
Never commit all capital to one trade
Diversify positions and strategies
Use trailing stop or partial exit to lock profits
Focus on compounding for gradual growth
5. Psychology with Risk
Builds discipline & patience
Eliminates revenge trading and overtrading
Increases confidence at managed losses
By mastering risk and money management, traders can protect their capital, trade with confidence,
and achieve steady long-term growth in the markets.
Course Preview
Foundation of Trading
Trading has a good base to start with. The fundamentals of market structure, candlestick reading,
and price action psychology are simplified in this course. You will be taught how to be confident
enough to join the real trades.
Risk & Money Management
Risk per Trade: The limit loss is to maintain risk at not more than 1–2% of total capital.
Stop Loss: It is always advisable to protect your account using a predefined exit.
Risk–Reward Ratio: Minimum of 1:2 so as to grow steadily.
Position Sizing: Change the lot size based on account balance.
Compounding: Ease to slow and consistent account growth.
Categories of Market Competitors
Retail Traders: Traders tend to trade on an emotional basis, either on the basis of tips or news.
Operators: Generate price and volume snares to affect retailers.
Institutions / Funds: Long-term stable investors that influence the market trend in general.
You will get real market demonstrations of how the professionals can move the market and how the
retailers can evade the pitfalls.
Psychology of Trading
Greed: The desire to pursue all of the movements.
Fear: Panic in the face of losses.
Impulse: Trading without a strategy.
Get to know how to manage emotions, trade disciplinarily and gain the psychological devotion of a
professional trader.
How We Go About Doing Business
Pre-market preparation: levels, watchlist and risk planning.
Determination of setups through candlestick, momentum and volume.
Disciplined entry including good stop-loss and position sizing.
Distributed exits – systematic profit booking / quick loss cutting.
Gurugram, sector -23/A