Foundation1.5 weeks · 5 sessions

Risk and Position Sizing

The unglamorous module that decides whether you're still trading in three years. Most blow-ups start here, not at the entry.

Prerequisites: None — we recommend this before Technical Analysis, not after.

Calculate correct position size from account risk, not gut feel

Set a stop-loss before entry, every time, without exception

Understand exactly why a 50% loss needs a 100% gain to recover

Build a simple trading journal that catches your own repeat mistakes

Session by session

What's covered in class

Why position sizing beats entry timing

45 min

The math of survival: risking 1–2% per trade versus risking 10%.

Setting a stop-loss you'll actually honour

50 min

Structural stops vs. arbitrary percentage stops.

Position size calculation, worked examples

55 min

Capital, risk %, entry, stop — turned into an exact quantity.

The drawdown math nobody explains

40 min

Why recovering from a big loss is mathematically brutal, not just emotionally.

Building a trading journal

45 min

The five fields worth tracking, and the one most journals miss.

Sample lesson — The drawdown math nobody explains

Lose 10% of your capital and you need an 11.1% gain to get back to even. Lose 50% and you need a 100% gain — not 50%. Lose 80% and you need a 400% gain.

This isn't pessimism, it's arithmetic: the percentage required to recover grows faster than the percentage lost, because you're gaining back on a smaller base.

This is the entire argument for capping risk per trade at 1–2% of capital. A trader risking 10% per trade needs only four to five bad trades in a row — completely normal variance — to be in a hole that takes a string of near-perfect trades to climb out of.

This is taught in our offline classroom

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