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Position Size and the 1% Rule
The single calculation that separates a trader from a gambler, built from the ground up: from how much to risk, to the exact lot size to type in.
- Who it is for
- Anyone who has ever chosen a lot size because it felt about right.
- Before you start
- What a Trade Really Costs, and Leverage, Margin and Staying Alive.
Opens with Premium, or buy the course on its own.
You will be able to
- Decide how much of an account one trade is allowed to lose
- State the 1% rule and what it protects you from
- Measure a stop distance in pips from the chart
- Work out what a pip is worth on the symbol and lot size you are trading
- Turn a risk in money and a stop in pips into an exact lot size
- Risk the same amount on gold, an index and a currency pair
14 papers
A short quiz after every paper; the next paper opens when you pass it.
Unit 1
How much is at stake
- 01What Is Risk Management5 min
- 02How Much to Risk on One Trade5 min
- 03What Is the 1% Rule5 min
- 04What Is the 2% Rule5 min
Unit 2
How far is the stop
- 05What Is a Stop Loss6 min
- 06How to Calculate Stop Loss in Pips5 min
- 07Where Not to Put Your Stop Loss5 min
Unit 3
What a pip is worth
Unit 4
The lot size