M6 · L1Risk Management
The Only 3 Numbers You Need
Risk per trade, maximum daily loss, and risk-reward. Get these three right and losses become irrelevant.
What This Means
Professional traders don't think about profit. They think about risk. Three numbers define their entire trading life: 1% per trade risk (never more), 3% maximum daily loss (stop trading if hit), and 1:3 minimum risk-reward. With these numbers, even a 40% win rate makes money over time.
Visual
The Rule
1% risk per trade. 3% max daily loss. 1:3 minimum RR.
These are not suggestions. These are laws.
COPY THIS
Do these steps exactly1
Write down your account size
Example: $1,000
2
Calculate 1% risk per trade
1% of $1,000 = $10 maximum loss per trade
3
Calculate 3% daily loss limit
3% of $1,000 = $30 — if you lose $30 in a day, close the platform
4
Save these two numbers somewhere you see before every trade
5
Run the math: with 1:3 RR and 40% win rate:
10 trades: 4 wins × $30 = $120. 6 losses × $10 = $60. Net: +$60. That's profitable at 40% win rate.
Common Mistake
The biggest account killers: revenge trading after a loss, increasing size after a win, ignoring the daily loss limit. All three are emotional decisions.