Risk Percentage and Lot Sizing

Lesson Overview

In "Trading Risk Management" → "Sizing and Stop Foundations", this lesson "Risk Percentage and Lot Sizing" builds knowledge you can apply immediately.

Risk 1%–2% of equity per trade. Lot size = risk amount ÷ (stop pips × pip value). EUR/USD example walks through 1% risk with a 30-pip stop.

Core Concepts

These points align with the video walkthrough—take notes as you watch.

• ▸Risk 1%–2% of equity per trade.
• ▸Lot size = risk amount ÷ (stop pips × pip value).
• ▸EUR/USD example walks through 1% risk with a 30-pip stop.

Practical Application

After studying, complete the companion practice lesson to move from understanding to doing.

• ▸Validate concepts on MT4/MT5 demo
• ▸Mark structures/indicators mentioned on live charts
• ▸Log operational steps in your trading journal

FAQ

• ▸Q: How does this lesson fit the course? A: Part of "Sizing and Stop Foundations"—follow the curriculum order.
• ▸Q: What do I need? A: Demo account and notes; quant lessons need a Python environment.
• ▸Q: How do I know I've mastered it? A: Pass the quiz and explain three key points of Risk Percentage and Lot Sizing on your own.