Module 8 – Money Management & Execution
This is where 90% of traders fail. Not on entries, not on signals — but on execution and discipline. A flawless setup means nothing if your risk is reckless. In this module, you’ll master the principles that keep professionals in the game while amateurs blow up accounts.
What You’ll Learn
- How to protect capital and manage risk like a professional
- How to structure trade journaling and track performance data
- How to control emotions and execute consistently under pressure
- How to scale your trading account safely over time
1. The Iron Law: Protect Capital First
Your job is not to make money — it’s to protect it. The trader who survives long enough always wins eventually. Treat every dollar like ammunition: deploy it only when the odds are in your favor.
“The best traders aren’t fearless. They’re ruthlessly disciplined with risk.”
2. Risk Management Fundamentals
2.1 The 1–2% Rule
Never risk more than 1–2% of your total capital per trade. A $10,000 account risks $100–$200 per trade — no exceptions.
2.2 Position Sizing Formula
Formula:
(Account Size × Risk %) ÷ (Stop-Loss in Pips × Pip Value) = Position Size
This turns risk into math — not emotion. Once position sizing is calculated correctly, guessing disappears.
2.3 The 1:3 Risk-to-Reward Rule
- Risk 1 unit to gain at least 3
- Even a 40% win rate becomes profitable
- Anything below 1:2 R:R is donating money to the market
3. Trade Management Rules
- Set and forget — no emotional tinkering after entry
- Move stop-loss to breakeven only after price reaches 1:1 R:R
- Secure partial profits at first major structure level
- Never widen stops — that’s hope trading, not strategy
Discipline turns strategy into results. The market rewards consistency, not perfection.
4. The Trader’s Mindset
Trading is 80% psychological. You can’t control the market — only your reactions to it.
4.1 Emotional Triggers
- FOMO: Chasing bad trades → Solution: alerts, not impulses
- Revenge Trading: Trying to earn back losses → Solution: stop after two consecutive losses
- Overconfidence: Loosening rules after wins → Solution: fixed risk until equity grows 10%
4.2 The 3 Golden Habits
- Stick to one system until 100 trades are logged
- Journal every trade — reason, result, emotion
- End each week reviewing top 3 mistakes and top 3 wins
Losses are unavoidable. Mismanaged losses are optional.
5. Trade Journaling – The Mirror of Mastery
Your journal is your trading coach. It exposes patterns you can’t see in the heat of execution.
What to Record
- Pair or asset
- Entry and exit price
- Setup type (Pin Bar, Engulfing, etc.)
- Risk percentage and R:R target
- Outcome (win or loss)
- Emotion before and after trade
- Screenshot of entry zone
Weekly Review
- Total trades and win rate
- Average R:R
- Emotional errors (FOMO, revenge, hesitation)
- One adjustment goal for the next week
6. Scaling & Compounding
Consistency plus risk control equals compounding power. You don’t need explosive gains — you need survivability.
- Aim for 3–5% growth per month
- Increase risk only after equity grows 10%+
- Withdraw profits quarterly to lock in gains
- Focus on percentages, not dollar amounts
A 5% monthly gain compounded for a year is roughly 80% growth. That’s how wealth is built quietly.
7. The Execution Checklist
Before every trade, confirm:
- ✅ Higher timeframe trend direction
- ✅ Key zone identified
- ✅ Structure confirmation
- ✅ Candlestick system signal
- ✅ Proper risk size calculated
If any box isn’t checked — no trade. Discipline is your edge.
8. Pro Insight
Trading mastery isn’t prediction. It’s execution under pressure.
“Winning traders don’t control the market — they control themselves.”
Treat every trade like a business decision. Manage risk like an investor. Execute like a machine. Review like a scientist.
That’s the Born 2 Dominate way.
