Risk Management Tutorials

Risk management is the backbone of successful prop trading. Unlike retail trading, where you risk only your own capital, prop trading adds a critical layer

Position sizing is the process of determining how much capital to allocate to a single trade. It is the most critical component of risk management in trading

Daily drawdown is the maximum amount of money a trader can lose in a single trading day before their account is closed or suspended. It is one of the most

Maximum drawdown is the largest peak-to-trough decline in the value of a trading account, measured as a percentage of the peak balance. It represents the

Risk per trade is the amount of capital a trader exposes to loss on a single trade, expressed as a percentage of their total account balance.

A stop loss is a pre-determined exit point that automatically closes a losing trade when the market moves against you. It is the most fundamental risk

Blowing a trading account losing all or most of your trading capital is more common than most beginners realize. Studies consistently show that a majority

Trading during high-impact news events such as Non-Farm Payrolls (NFP), Consumer Price Index (CPI), central bank rate decisions, and GDP releases is one

A losing streak is a sequence of consecutive losing trades without a winning trade in between. It is one of the most inevitable and most dangerous phenomena in trading.

What Is Capital Preservation Capital preservation is the practice of protecting your trading account from significant losses. It is the foundational principle