Essential strategies to protect your investing capital and manage risk effectively.

Position Sizing

Percentage-Based Sizing

• Risk per trade calculation
• Account balance consideration
• Maximum position limits
• Scaling methods
• Recovery scenarios

Fixed Position Sizing

• Standard lot sizes
• Consistent risk amount
• Capital preservation
• Easy calculations
• Systematic approach

Dynamic Position Sizing

• Volatility-based adjustment
• Market condition adaptation
• Performance-based scaling
• Risk level adaptation
• Progressive growth

Stop Loss Strategies

Fixed Stop Loss

• Predetermined exit point
• Clear risk definition
• Simple implementation
• Consistent approach
• Position size calculation

Trailing Stop Loss

• Dynamic risk management
• Profit protection
• Trend following
• Automated adjustment
• Multiple timeframe use

Time-Based Stops

• Maximum holding period
• Opportunity cost management
• Swing trade timing
• Market session consideration
• Pattern completion

Risk-Reward Ratio

Calculation Methods

• Entry price reference
• Target identification
• Stop loss placement
• Ratio optimization
• Setup qualification

Implementation

• Minimum acceptable ratios
• Setup evaluation
• Position sizing integration
• Multiple targets
• Partial exit strategies

Portfolio Management

Diversification

• Asset class spread
• Correlation analysis
• Sector allocation
• Geographic distribution
• Risk factor exposure

Exposure Limits

• Maximum per trade
• Total portfolio risk
• Sector limitations
• Leverage constraints
• Drawdown management

Performance Monitoring

Key Metrics

• Win rate tracking
• Average win/loss
• Sharpe ratio
• Maximum drawdown
• Recovery factor

Analysis Tools

• Trade journal
• Performance dashboard
• Risk analytics
• Position monitoring
• Portfolio valuation