UNIJOS MTL COMMUNITY

1.What is a stop-loss?

2.What is take-profit?

3.What is risk-to-reward ratio?

4.What is position sizing?

5.Why is risk management important?

6.How much should a trader risk per trade?

7.What is drawdown?

Make everybody pick and answer

1.What is a stop-loss?

2.What is take-profit?

3.What is risk-to-reward ratio?

4.What is position sizing?

5.Why is risk management important?

6.How much should a trader risk per trade?

7.What is drawdown?

Make everybody pick and answer

1.What is a stop-loss?

2.What is take-profit?

3.What is risk-to-reward ratio?

4.What is position sizing?

5.Why is risk management important?

6.How much should a trader risk per trade?

7.What is drawdown?

Make everybody pick and answer

1.What is a stop-loss?

2.What is take-profit?

3.What is risk-to-reward ratio?

4.What is position sizing?

5.Why is risk management important?

6.How much should a trader risk per trade?

7.What is drawdown?

Make everybody pick and answer

1.What is a stop-loss?

2.What is take-profit?

3.What is risk-to-reward ratio?

4.What is position sizing?

5.Why is risk management important?

6.How much should a trader risk per trade?

7.What is drawdown?

Make everybody pick and answer

1.What is a stop-loss?

2.What is take-profit?

3.What is risk-to-reward ratio?

4.What is position sizing?

5.Why is risk management important?

6.How much should a trader risk per trade?

7.What is drawdown?

Make everybody pick and answer

1.What is a stop-loss?

2.What is take-profit?

3.What is risk-to-reward ratio?

4.What is position sizing?

5.Why is risk management important?

6.How much should a trader risk per trade?

7.What is drawdown?

Make everybody pick and answer

No. 6

Every trader should risk what he/ she can be able to afford, just put in mind that the higher your risk, the higher your reward, but nothing less than $10

1. What is a stop-loss?

Answer: A stop-loss is your exit if the trade goes wrong.

It’s a pre-set price/order that automatically closes your trade to limit your loss.

Think: _"This is where I admit I was wrong."

Example: You buy at $100, SL at $95. If it hits $95, you’re out -$5.

2. What is take-profit?

Answer: A take-profit is your exit when the trade goes right.

It’s a pre-set price/order that automatically closes your trade to lock in profit.

Think: _"This is my target."

Example: You buy at $100, TP at $110. If it hits $110, you’re out +$10.

3. What is risk-to-reward ratio?

Answer: R:R = How much you risk vs how much you can make.

Formula: Risk: Reward

Example: Risk $5 to make $10 = 1:2 R:R

Rule: If you have a 1:2, you only need to win 40% of trades to be profitable.

4. What is position sizing?

Answer: Position sizing = How much of the asset you buy so that you only risk X amount.

It’s NOT "how many lots". It’s "how much will I lose if my SL hits".

Formula: Position Size =

Example: $100 account risk, SL is 50 pips away = you size so you only lose $100.

5. Why is risk management important?

Answer: Because 1 bad trade can blow your account.

Risk management keeps you alive so you can trade tomorrow.

Without it: Emotions, revenge trading, blown accounts.

With it: You survive losing streaks and let winners pay you.

6. How much should a trader risk per trade?

Answer: The golden rule: 1-2% of your account per trade.

Pros use 0.5% - 1%.

Example: $10,000 account x 1% = $100 max loss per trade.

Why? You can lose 10 times in a row and still have 90% of your account left.

7. What is drawdown?

Answer: Drawdown = How much your account drops from its peak.

Example: You peak at $10,000, then drop to $8,000 = 20% drawdown.

It measures how much pain you went through. Low drawdown = pro trader.

1. What’s the difference between base and quote currency in a pair like Eur/ USD

2. What’s a pip

3. How is a pop used to measure price movement in a currency pair?

4. How does leverage amplifies both potential profits and potential losses in a Forex account

5. How does leverage amplifies margin and free margin differ?

6. What’s the difference between pending order and market order

7. What’s a bearish market

8. What’s a bullish market

9 what’s a consolidation

10. What’s the purpose of a stop loss order and a take Profit order

We’d be having questions up for answers this morning, Do Your Own Research.

With that being said, let’s go

I agree with you

7. What is drawdown?

Answer: Drawdown = How much your account drops from its peak.

Example: You peak at $10,000, then drop to $8,000 = 20% drawdown.

It measures how much pain you went through. Low drawdown = pro trader.

A bear market is a financial market condition where prices are falling or expected to fall over a sustained period.