5 - 10 min to read
Homework
On your demo account:
Open 3 trades with a fixed SL/TP (example: 1:2 ratio)
Use no more than 2% of your demo balance per trade
Write for yourself:
– Entry point
– Why have you entered?
– SL/TP levels
– Result (win/loss
– Emotions
The goal is not to win every trade, but to practice discipline.
FAQ
1. Why do most new traders lose money?
They often fail to manage risk properly. Common mistakes include trading too large, skipping Stop-Loss, chasing losses, and making emotional decisions.
2. What is the purpose of a Stop-Loss (SL) and Take-Profit (TP)?
Stop-Loss closes a trade automatically if the price moves against you, limiting losses.
Take-Profit closes a trade automatically once your profit target is reached, locking in gains.
3. How much of your capital should you risk on a single trade?No more than 1–2% of your account balance per trade. This protects you from large losses and helps you stay in the game long term.
4. What are the “big three” emotions that can harm your trading?
Fear: Closing trades too early or avoiding good opportunities.
Greed: Increasing trade size or removing Stop-Loss.
Revenge: Opening random trades to recover losses.
5. What are the key risk management rules?
Never risk more than 1–2% of your capital on a single trade.
Don’t open more than five trades at the same time.
Avoid “all-in” trades and only enter when confident in your setup.