Core Risk Principles
Position Sizing
Never risk more than 2-3% of your capital on a single trade
- •Calculate position size based on account balance
- •Use stop-loss to limit maximum loss per trade
- •Adjust position size based on strategy risk profile
Stop Loss Management
Always define your exit strategy before entering a trade
- •Set stop-loss at technical support/resistance levels
- •Use trailing stops for profitable positions
- •Never move stop-loss against your position
Risk-Reward Ratio
Maintain minimum 1:2 risk-reward ratio for all trades
- •Target profits should be at least 2x your risk
- •Calculate R:R before entering any position
- •Skip trades with unfavorable risk-reward ratios
Diversification
Don't put all eggs in one basket - spread your risk
- •Trade different sectors and instruments
- •Avoid correlation between positions
- •Limit exposure to single stock/sector
Risk Calculators
Position Size Calculator
Calculate optimal position size based on your risk tolerance
Position Size = (Account Balance × Risk %) ÷ (Entry Price - Stop Loss)Calculator
Risk-Reward Calculator
Evaluate if a trade meets your minimum R:R requirements
R:R Ratio = (Target Price - Entry Price) ÷ (Entry Price - Stop Loss)Calculator
Options Greeks Calculator
Understand how Delta, Gamma, Theta affect your positions
Total Risk = Premium Paid + (Delta × Underlying Movement)Calculator