Invalidation
The level where the idea is wrong, set before you click.
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Risk management
Invalidation, risk and discipline: the rules the desk trades by.
Before entry
Risk is planned.
Never improvised.
Before every trade, the desk decides where the idea is wrong, how much to risk and what size to trade. Management and review then have to stick to those decisions.
Position sizing
A position size that fits the stop and the risk.
Review
Check you stuck to the plan, even when the trade won.
The desk rules
Five things
we never do.
A method is just as much about what you don't do. The rules don't change before or after a trade.
- 01Move the stop to dodge a loss
- 02Chase price
- 03Size up after a loss
- 04Trade the news without a plan
- 05Judge a trade on the result alone
These materials explain how the desk teaches. They are not personal trading advice and they don't guarantee results.
See preparation & review