RISK MANAGEMENT LIVE EXERCISE
Protect Before You Profit
Scenario: $10,000 Portfolio
Market drops 20% unexpectedly
Your Defense Protocol:
1. Maximum acceptable loss? (Comment %)
2. Position size per trade? (Comment %)
3. Stop-loss methodology?
4. Recovery strategy?
Professional Standards:
• Max loss: 15-20% total portfolio
• Position size: 1-2% risk per trade
• Stop-loss: Technical breaks, not % arbitrary
• Recovery: Reduce size, not increase risk
Share your rules below
Following all serious responses