My risk plan (daily and weekly limit)

A risk plan is a sheet of paper that saves you from yourself. You write it when you're calm and follow it when you're not.

The five numbers you need

1. Risk per trade: e.g. 1% of the account (0.5% on a challenge).
2. Daily limit: e.g. 2% of the account or 2 losing trades.
3. Weekly limit: e.g. 5% of the account.
4. Most trades per day: e.g. 3.
5. When I size down: e.g. half size after 3 losses in a row.

Example for a $10,000 account

Rule	Number
Risk per trade	$100
Daily limit	$200
Weekly limit	$500
Most trades per day	3

When you hit the limit, you close the platform. You don't “just look at the chart”. That's how a revenge trade is born.

Why it works

Your worst day can't destroy the account, because it is capped. Neither can your worst week. You stay in the game long enough for your strategy to actually show itself.