Normal Forex & Crypto Trading · Chapter 5
Risk Management in Practice
Stops, Targets, Leverage, Lot Size, Fees & Liquidity (Forex & Crypto).
What you’ll be able to do after this chapter
- Plan and place a trade with a defined stop-loss (SL) and take-profit (TP)
- Calculate correct lot size / position size based on your risk tolerance
- Understand leverage, margin, and liquidation risks
- Account for fees, spreads, and other costs in break-even calculations
- Evaluate liquidity and slippage risk before entering trades
- Use TradingView to visualize and plan trades with proper risk-to-reward ratios
Introduction
You already know charts and indicators—now it’s time to protect your capital. This chapter gives you a complete risk framework so you can plan trades calmly and consistently in both Forex and Crypto markets.
Lesson roadmap
Section 1 — Risk Management Practice
- Why stops & targets remove emotion
- Practical SL placement methods
- Minimum R:R requirements
Section 2 — Position / Lot Size Calculation
- 0.5–1% risk rule
- Lot size vs quantity
- Stop distance → size
Section 3 — Position, Margin & Liquidation
- Leverage impact
- Margin basics
- Liquidation mechanics
Section 4 — Fees, Spreads & Order Types
- Spread + fees → break-even
- Market vs limit orders
- Execution basics
Section 5 — Liquidity, Slippage & Execution Risk
- Liquidity and spread
- Slippage impact on R:R
- Execution risks
Section 6 — Long vs Short; Time in Trade
- Long vs short mechanics
- Time-in-trade
- Exit rules
Section 7 — Do’s & Don’ts (Friendly Reminder)
- Demo first
- Keep risk small
- Don’t move stop farther
Workbook
- Position mastery workbook drills
- Apply sizing + SL/TP + fees awareness