Risk Management to Protect Your Trading Capital

If you’ve been trading for a while, you already know—entries are easy, but managing risk is what keeps you in the game.
At ForexSPV, we train traders to stop chasing the market and start managing their capital like pros.

This isn’t about theory. It’s about trading smarter, not harder.

🔹A Real Trader Doesn’t Chase Trades—They Manage Risk

Risk management is more than setting a stop-loss.
It’s about making sure your one good trade can pay for your bad ones.
And that starts with knowing your risk-to-reward ratio.

  • ✅ 1:1 RM: SL 50 pips, TP 50 pips
  • ✅ 1:2 RM: SL 30 pips, TP 60 pips
  • ✅ 1:3 RM: SL 30 pips, TP 90 pips or more

Stick to this, and even after 3 losses and 1 win—you’re still profitable. That’s trading with an edge.

🔹Know Your Lot Size — Or Watch Your Account Bleed

Ever blown an account on a winning streak?
You probably oversized and got hit on one loss.

We don’t let that happen. Here’s how we size our trades in MQP:

CapitalLot SizeMax Positions Per Trade
$1000.013
$2000.023
$1,0000.103
$10,0001.003

You don’t need to trade big. You need to trade smart. Let your reward ratio do the heavy lifting.

🔹 You Will Lose. But That One Win Can Save Your Week

Let’s be real—losses are part of the game.
But what matters is how your system handles them.

Using our 1:5 risk/reward setups, here’s what it looks like:

  • 4 losses × 30 pips = –120 pips
  • 1 win × 150 pips = +150 pips
  • 💹 Result: +30 pips NET

That’s how professionals survive bad weeks—by managing risk, not avoiding it.

🔹Don’t Let Emotion Burn Your Account

Most traders don’t blow accounts because of strategy—they blow it because of emotion.
You got greedy. You moved your SL. You doubled your lot size. Sound familiar?

Our rule: Stick to your RM. Or don’t trade at all.

“Your capital is your business. Risk it like a businessperson.”

📌 Final Reminder to All Traders:

If you’re serious about growth, discipline must become your trading partner.
Your entries matter. But your risk rules build the long-term profit.

🎯 At ForexSPV, we don’t just teach entries.
We teach traders to think like risk managers and act like investors.


Need help applying this in real-time trading?
📞 Join the MQP Alloy mentorship and protect your capital the way professionals do.