Risk Management
Never risk more than 2% of your account on a single trade. This discipline protects your capital during inevitable losing streaks and ensures trading longevity.
Position Sizing
Calculate optimal position sizes based on your risk tolerance and predefined stop loss. Scale your positions as your account grows for maximum capital efficiency.
Psychological Edge
Maintain emotional control through strict adherence to your trading plan. Avoid revenge trading after losses and prevent overconfidence after winning streaks.
Expectancy Formula
Apply the expectancy formula: (Win Rate × Average Win) - (Loss Rate × Average Loss). A positive expectancy indicates a profitable strategy over time.
Risk-Reward Ratio
Target a minimum 1:2 risk-reward ratio for each trade. With this approach, you can maintain profitability even with a win rate below 50%.
Compounding Power
Harness the exponential growth potential of compounding. Consistent reinvestment of profits accelerates your account growth and wealth accumulation over time.