Phase Four - Risk Management and Trade Management

About this course

Earlier Three Phases made you equipped with the required Basics, Psychology - The Trading Mindset, Core Knowledge, Technical Analysis & Tools. Now you will need to apply what you have learnt and for that you will require certain Trading Skills, Planning, Making & Executing Decisions with logic. "Success isn't finding the perfect trade — it's becoming the trader who executes perfectly. It is one of the most important reason behind the successful traders being consistently profitable. You will learn the importance and application of Stop loss, Position sizing, Risk-reward ratio, Daily loss limits, Capital allocation and so on. "Losses are tuition. Learn the lesson before paying again." This phase will change, how you think about money in trading. Because here is the uncomfortable truth — the best strategy in the world, traded with poor risk management, will blow your account. And a mediocre strategy, traded with excellent risk management, can actually make you profitable. "The market owes you nothing. Trade accordingly."

Curriculum

• 01Risk management — the survival code
• 02Capital allocation for FNO — how much of your total capital
• 03Correlation risk — when all your trades move together
• 04Black Swan preparation — what happens if market falls 5% in a day
• 05Stop loss — the most important skill
• 06Where to place stop loss — not arbitrary points
• 07Stop loss for option buyers — point-based vs premium-based
• 08The art of not moving your stop loss — the most violated rule
• 09Position sizing
• 10Fixed fractional position sizing — the professional approach
• 11How many lots to buy — the correct calculation
• 12Position sizing across different capital levels
• 13Scaling into positions — pyramiding correctly
• 14Position sizing during high volatility events
• 15Risk-to-reward ratio
• 16R:R and win rate — the mathematical relationship
• 17How to identify trades with good R:R before entering
• 18Improving R:R through better entry timing
• 19Strike price selection — the art and science
• 20ATM options — maximum gamma, maximum time decay
• 21Strike selection using Delta — the 0.30-0.40 delta framework
• 22Max Pain theory — what it is, what it means, limitations
• 23Strike selection based on support/resistance levels
• 24Weekly vs monthly expiry strike selection differences
• 25Options strategy selection framework
• 26Debit spreads — reduce cost of buying
• 27When to buy calls vs puts — the asymmetric information signals
• 28Event-based buying strategies
• 29Gap trading with options