A First Trading Checklist
Before opening a position, inspect quantity, exits, costs and combined exposure.
Introduction to Risk Management
Define an affordable loss budget, a reasoned exit and a position size before entering. Stops can slip and correlated positions can share the same risk. Include fees and avoid treating any percentage rule as universally appropriate.
Example
An illustrative $2,000 account with a 0.5% risk budget allocates $10 before fees and possible slippage.
Position Sizing
Size can be estimated by dividing a cash risk budget by loss per unit at the planned stop. Round down to a permitted lot increment and account for fees, conversion and slippage. A stop-based estimate is not a guarantee of maximum loss.
Example
A $20 risk budget and $10 loss per lot per pip over a 20-pip stop suggests 0.10 lots before costs.
Trading Plans
A trading plan describes entry conditions, risk limits, exits, review rules and when not to trade. Make actions observable so actual behavior can be compared with intentions. Update a plan deliberately after review rather than during emotional decisions.
Example
A plan might require a checklist and a session loss limit before a new entry is considered.
All educational content is provided for general information and educational purposes only. It does not constitute investment advice, financial advice or a recommendation to buy or sell any financial instrument. Trading leveraged products involves significant risk and may result in the loss of invested capital.