Risk management explained (II): risk-giving calculation & commercial diary

In this second part of our risk management I will break:

• How to risk -ordered relationship
• Give your positions correctly, and
• The secret of trade growth often overlooked: Diary.

In the world of trade, consistent growth is not just about finding the best strategy – it is about managing your risk and building systems that keep you disciplined.

Whether you trade forex or crypto, controlling this combo can take you from emotional gamble to strategic implementation.

Let’s go to the business of the day.

Calculation of risk-reward and position size (with examples)

Let’s go through two practical examples to show how traders can properly increase their positions and manage the risk with the help of tools such as Tradingview And FxCryptocalculator.

Forex Example – Aud/JPY

• Submission: 94,362
• Stop loss: 94.528
• Make a profit: 93,936
• Risk/reward: 2.57R
• Account size: $ 1,000
• Risk %: 3% → $ 30

Use the calculator, input:

• Stop loss in Pips
• Account size
• Risk -frequency
• Type of Instrument: Forex

Position size (party size) = 0.26

• If the trade fails → Loss: $ 30
• If the trade succeeds → Profit: $ 30 × 2.57 = $ 77.10

Crypto Example – BTC/USDT

• Submission: 109,734.3
• Stop loss: 110.166.6
• Risk/reward: 2.37R
• Riskovo: $ 30

Enter this in the calculator:

Position size = 8,613 USDT

On BiteDo the following:

• Usage 100x leverage
• To elect Order on value
• Set Position size” stop lossAnd make a profit
• Loss = $ 30
• Gain = $ 71.10

Simple. Checked. Repeatable.

What if you use “order by costs” or act on Blofin?

For platforms such as Blof:

• Usage Maximum leverage
• Calculator returns one commercial costs (E.g. $ 57.40)
• Set your commercial” SLAnd TP

Your maximum loss remains $ 30, with the profit that depends on your risk order ratio.

Now we will look at the power of putting together and how we can best put together.

The power of compiling

In crypto or Forex Trading” composing resources reinvest your profit To grow your trade account in the course of time.

Instead of taking your profit after every winning trade or at the end of the week/month, add them back to your account balance.

This increases the amount that you can risk in future transactions (If you use a percentage -based risk strategy)which leads to Faster account growth – Assuming that you remain profitable and disciplined.

Example of composition in trade:

Let’s say you start $ 1,000 and risk 2% per trade.

• First trade: Risk = $ 20
• You win and earn $ 40 (2: 1 Risk remuneration)
• New balance = $ 1,040

Now, your next 2% risk = $ 20.80 instead of $ 20.

In the course of time, that slight increase True considerableEspecially with consistent victories.

Why putting together things:

• Faster account growth
• Encourage discipline
• Helps you see long -term potential
• Builds trust when it is followed well

But there is a reservation:

Compounding reinforces both profits and losses.

Without a solid strategy and risk management, the accounts can blow up faster.

So, use it wisely.

If you want to grow steadily, Start with monthly compositionThen shift weekly once you are consistent.

Here is how:

1. Add monthly profit to your balance
2. Recalculate your new risk amount
3. Repeat

For example:

• Start: $ 1,000
• Monthly growth: 20%

Use one Composite Calculator Spreadsheet To follow this.

And what if your Risk reward improves to 1: 3?

By year 3: About $ 12 million is possible – with discipline.

In the following subsections we will look at a secret tool for accountability that most traders do not implement.

Trade Journal: Ignore the secret weapon the most

This is where most traders failureEven if they have the right tools.

Why?

Because they skip the most powerful habit for accountability and growth: Diary.

It is the process of recording and assessing your transactions, including not only the numbers, but also your thoughts, emotions and decisions behind every trade.

Journaling is important in trade because of the following:

1. Follow your progress

It shows your:

• Win/loss ratio
• Profit/loss over time
• Errors and improvements

You fly blind without a diary.

2. Reveal patterns

You start to notice:

• Which setups work best
• What times/days are the most profitable
• Your bad habits (eg overstracing, revenge trade)

3. Improves emotional control

Write down your thoughts before and after an exchange helps you:

• Stay calm and objective
• Understand your trading psychology
• Avoid impulsive decisions

4. Builds accountability

When you have a diary, you will keep yourself responsible for every exchange.

No longer blaming the market – only learned lessons.

5. Boost your strategy

Over time, Journaling helps to refine your trading system:

• Which indicators actually help?
• Do certain news events throw you away?
• Are you consistent with your submissions/outputs?

What to include in a trade diary

That said, let’s complete this message in the next subsequent.

Last thoughts

Risk management is more than setting a loss of stopping.

The point is to calculate smart positions, compile wisely and keep track of your progress by journaling.

If you want long -term success, start here.

Keep it simple, stay consistent and never stop learning your transactions.

You can become a member of our mentoring session For more information.

Our communities on Telegram (crypto & ForexAnd) and Disagreement are available for coins calls and trade signals.

Do you need questions or help with one of the aforementioned tools?

Let them fall in the comments. Let’s grow together.

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