LESSON 7
 

PIPS, LOTS & POSITION SIZING

 

Lesson Overview
 

This lesson covers one of the most important practical foundations in trading: Risk management.

Many beginners obsess over entries while ignoring position size and risk exposure. Professional traders think differently.

Before entering any trade, professionals already know:

• Their maximum risk • Their position size • Their stop loss impact • Their potential reward

This lesson explains why position sizing and risk control are essential for survival and long-term consistency.

Key Concepts Covered
 

• What pips represent • Understanding lot sizes • Position sizing • Risk management • Controlled loss

What You Should Take Away
 

Trading without understanding risk is gambling. Protecting capital is the first responsibility of every trader.

Workbook Focus
 

Pay close attention to:

• How lot size changes exposure • Why stop losses matter • The relationship between risk and longevity