Lesson 8 · Beginner

Introduction to Risk

Position sizing, stop placement and why risk is defined before entry.

6 min read

Define the loss first

Deciding what a trade may cost before entering it converts an open-ended exposure into a bounded one, and makes position sizing a calculation rather than a feeling.

Key takeaways

  • Risk is defined before entry
  • Size follows stop distance
  • Consistency matters more than any single trade

Trading leveraged products carries significant risk. This content is educational and is not financial advice.