How I Manage Risk: My Personal Rules

Originally shared by Kira Engineer in our community's "Mindset & Learning" section.

From my personal experience, I use the following most of the time:

1. I don't oversize any trade - even when I'm very sure of my analysis. I use 1-2% maximum of my equity per trade.
2. I usually look for a 1:3 risk-to-reward ratio.
3. I don't open many positions - a maximum of 2-3, and always calculated.
4. I always use a stop loss, and use it to define the trade and protect my equity from changes in the market.
5. I care most about sustainability - keeping net P/L positive on a daily, weekly, and monthly basis.
6. When I take profits, I manage them - withdrawing or keeping equity, but not leaving profits idle for too long, so I can maintain the same strategy.

"My only focus is to protect my capital. After that, making profits becomes a side effect of my trading."

Protecting capital first is the whole idea. Everything else follows from it.

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Educational content only - not financial advice. These are the founder's personal rules, shared for learning; they are not a recommendation for your account. Trading involves risk of loss.