Risk Management: The Only Thing That Actually Matters

## The Hard Truth Most traders die from risk management failures, not bad strategies. ### The 1% rule Never risk more than 1% per trade. With $5,000, that is $50 max. ### Position sizing Position size = (Account x Risk%) / (Stop distance x Pip value) Example: $5,000 account, 1% risk, 25 pip stop on EUR/USD = $50 / (25 x $1) = 2 mini lots (0.2 standard). ### Stop placement Never place a stop based on dollars. Place it based on chart structure. ### Drawdown math - Down 10% = need 11% to recover - Down 25% = need 33% - Down 50% = need 100% - Down 75% = need 300% Protect downside. Upside takes care of itself. [Pricing](/#pricing).