Learn Risk Management
— The Honest Guide.

The boring part that keeps you in the game. Learn the mathematics of survival and why protecting your capital is your #1 job.

1. The Business of Trading: Managing Overhead

Think of trading like any other business. Your losses are your 'overhead' or your 'rent'. A business that can't manage its overhead will eventually go bust. In trading, 'risk management' is the process of ensuring that no single loss — or even a string of losses — puts you out of business.

2. The Golden Rule: The 1% Risk Model

We advocate for the 'Fixed Fractional' risk model. This means never risking more than 1% of your current account balance on any single trade. If you have £10,000, you risk £100.

Crucial Warning: The Guru Trap

Most online guides for "Risk Management" are designed to sell you indicators or signal groups. At Drawdown, we teach you strategy and discipline. If a guide promises "guaranteed" returns or "100% win rates," it is a scam. Period.

Common Questions.

Should I always use a hard stop loss?

Yes. Always. A 'mental stop' is an invitation for your ego to negotiate. A hard stop loss is your only insurance against a total account wipeout.

Learn Risk Management — The Honest Guide.