The session focused on risk management basics in trading, particularly how much to risk per trade and the importance of discipline.
Key takeaways included the recommendation to risk only 1–3% of account size per trade or per day, and the necessity of treating trading with patience and emotional control.
Attendees were encouraged to prioritize skill development over quick profits and to avoid overtrading or overleveraging.
Emphasis was placed on the inevitability of losses in early trading and the need for strong discipline to achieve long-term success.
Action Items
Attendees: Research how to calculate 1–3% risk per trade for your specific market (options, futures, forex) using online calculators.
Attendees: Write down your personal risk management rules—1–3% per trade/day and planned daily trade limits—in your notes.
Attendees: Reflect on your discipline and emotional reactions after each trading session to identify and prevent repeat mistakes.
Risk Management Fundamentals
Risk management is primarily about determining how much to risk per trade and sticking to it.
Recommended risk is 1–3% of total account size per trade, regardless of trading instrument (options, futures, forex).
Overtrading and risking more than the set percentage leads to accelerated losses and emotional pitfalls.
Discipline and Mindset in Trading
Discipline and maintaining a strong, stable mindset are even more important than risk management mechanics.
Emotional responses, especially after losses, can lead to overtrading and greater losses if not managed.
Treat each account, regardless of size, with the seriousness you would offer to a much larger account.
Avoid the "get rich quick" mentality; sustainable trading success takes time, patience, and learning from mistakes.
Practical Guidance and Next Steps
Use online resources (Google, position size calculators) to determine proper risk amounts for each trade.
Log personal risk tolerance and enforce a daily risk limit to avoid blowing up accounts after a losing streak.
Focus learning on mastering the skill of chart reading rather than seeking immediate monetary gains.
Decisions
Set risk per trade/day at 1–3% of account value — This approach prevents large drawdowns, promotes account longevity, and enforces discipline among traders.
Open Questions / Follow-Ups
None raised; session was instructional and did not solicit attendee-specific questions.