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Dunn To PerfectionFoundation

Risk Management · Module 4: Building a Risk Plan · Lesson 2

Building a Risk Plan

Beginner 6 minLesson 14 of 15

Learning objectives

  • Explain building a risk plan in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

A written plan: risk per trade, max daily loss, max , cap, and what happens when limits are hit.

Why it matters

Rules decided in calm conditions protect you in emotional ones.

How markets interpret it

Many educators recommend reviewing the plan monthly.

Key takeaways

  • Write it down.
  • Include stop-trading rules.

Knowledge check

A good risk plan is…

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