Last Updated: September 23, 2026 What is the 2% rule in trading? It limits the planned loss on one trade to 2% of account equity. The useful part is deciding that loss before opening the position. A $5,000 account at 2% risk has a $100 planned loss. That does not mean buying $100 of an … Read more
Last Updated: September 22, 2026 What Is Risk Management in Trading? It is the process of deciding how much money can be exposed before a trade and how that exposure will be controlled if the idea fails. A strategy finds an opportunity. Risk management decides position size, invalidation, and when trading should stop. Why Risk … Read more
Last Updated: September 22, 2026 How to Calculate Forex Lot Size becomes much easier when you stop choosing a lot first. Start with the amount you are prepared to risk, identify the logical stop-loss, check the pip value, and let the calculation determine the position size. A larger position only increases monetary exposure. What Is … Read more