Trading Guides

How to Calculate Position Size — A Simple Guide for Traders

Learn the exact formula for calculating position size based on account balance, risk percentage, and stop loss distance. Works for stocks, forex, and crypto.

May 2026 · 5 min read

What is Risk/Reward Ratio? Definition, Formula & Examples

A clear explanation of risk/reward ratio in trading — what it means, how to calculate it, and why it matters more than win rate for long-term profitability.

May 2026 · 4 min read

How to Use a Stop Loss: Placement Strategies That Work

A practical guide to stop loss placement — fixed, ATR-based, and support/resistance stops — and how to size your position around your stop correctly.

May 2026 · 5 min read

What is Dollar-Cost Averaging (DCA)? How It Works

Dollar-cost averaging explained — how it works, when it reduces your average cost, when it doesn't help, and how to calculate your DCA average price.

May 2026 · 4 min read

What is Drawdown in Trading? How to Measure and Manage It

Drawdown explained — the formula, the difference between absolute and max drawdown, the recovery math that should change how you size positions, and how to manage it.

May 2026 · 4 min read

Forex Lot Sizes Explained: Standard, Mini, and Micro Lots

A complete guide to forex lot sizes — what standard, mini, micro, and nano lots mean, their pip values, and how to pick the right lot size for your account.

May 2026 · 4 min read