Module 6: Risk, process, and mindset
17 lessons, in reading order.
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Risk Management Arithmetic: Position Size, Risk-Reward, Drawdown
What position size is, how traders frame risk per trade and risk-reward ratio, and the plain arithmetic behind drawdown, loss recovery and risk of ruin.
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Trade Management: What Happens Between Entry and Exit
How written trade management rules work: partial exits, moving stops, time limits, adding and news, each shown on fictional replays that helped and hurt.
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Trading Plans, Journaling and Honest Backtesting
What a trading plan contains, what a trading journal records, and how backtests mislead through overfitting, multiple testing and survivorship bias.
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Building a Trading Plan Document
See which sections a written trading plan often includes, why risk and time limits are set in advance, and how a plan separates plan and execution errors.
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A Pre-Trade Checklist: Slowing Down Before Acting
Learn why checklists catch avoidable errors, see a fictional checklist covering data, events, size and plan fit, and why it cannot predict outcomes.
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Journaling Your Reasoning, Not Just Your Results
Learn what a trading journal entry can record before, during and after a trade, why reasoning is written first, and how chart screenshots aid review.
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The Weekly Review: Process Before Outcome
Learn how a weekly review uses the plan, checklist and journal, why process comes before outcome, and why small samples and many changes at once mislead.
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Trading Psychology: FOMO, Loss Aversion and Routines
Common thinking patterns in trading, such as FOMO, loss aversion, revenge trading and overconfidence, and how some traders use routines to notice them.
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Economic Events and Headlines: Volatility, Not Instructions
What an economic calendar lists, how releases, earnings and central bank meetings can change volatility and liquidity, and why headlines aren't orders.
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How to Spot Trading Gurus and Guaranteed-Return Claims
How to spot trading gurus: warning signs include guaranteed-return claims, profit screenshots and urgency, plus how to check US registration for free.
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Sizing Futures Positions in Contracts: Ticks, Tick Value and Whole Numbers
Learn how ticks, tick value and fees give the loss per futures contract at a stop, why counts round down to whole contracts and what the math omits.
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Risk of Ruin: How Losing Streaks and Bet Size Interact
Learn what risk of ruin means, how often losing streaks happen, why the share lost per trade matters, and which assumptions sit under the numbers.
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Overnight and Gap Risk: When Prices Jump Past a Stop
Learn why prices can gap past a stop, how a stop becomes a market order, and which scheduled events and weekends raise gap risk for open positions.
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Tax Concepts for Traders: Words to Know Before You Ask a Professional
General terms such as realized gains, cost basis and holding period, why products and accounts can differ, and why to ask a qualified tax professional.
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Reviewing Your Own Trade Statistics: Expectancy, MAE and MFE
Learn how win rate and average win and loss combine into expectancy, what MAE and MFE describe and why small samples and selective records mislead.
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Common Trading Scams: Beyond Gurus
Learn how pump-and-dump schemes, fake platforms, relationship scams and recovery scams work, plus where to check firms and report fraud in the US.
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Capstone: One Method, Start to Finish
One fictional method taken through plan, replay test, small live size, journal, weekly review, one rule change and an honest re-test on unseen sessions.