Chart Part 6: Risk Management - Position Size, Stop Loss & Journal

The part that actually decides survival: risk 1-2% per trade, place real stops, and journal everything.

By DigitalNepal · Updated 2026-10-04 · Verify current figures on official sources

Beginners obsess over entries; professionals obsess over exits. Ten losing trades at 1% risk each still leaves 90% of capital. One 50% loss needs a 100% gain just to recover.

Use the share calculator on this site to include brokerage costs in every plan - costs are part of risk.

Steps

1Risk 1-2% per idea
Position size = (capital × risk%) ÷ (entry − stop). If the math gives an awkward quantity, take the smaller size.
2Place the stop where you are wrong
Beyond the pattern boundary or structure level - not at a round number that 'feels' safe. No stop = no trade.
3Demand asymmetry
Risk Rs 1 to make Rs 2+ (1:2 minimum). A 40% win rate at 1:2 still grows capital; 60% wins at 1:1 barely covers costs.
4Journal every trade
Entry, stop, target, reason, screenshot, emotion, result. Review weekly - your journal teaches what no course can.
5Cap daily damage
Two losses in a row = screens off for the day. Tilt trading has destroyed more accounts than bad patterns ever will.

Good to know: Paper-trade each new concept for at least 20 trades in a journal before risking real rupees. Boring beats broke.

Information last verified: 2026-10-04. Prices, fees, rules and requirements change - confirm on the official website or office before acting. DigitalNepal.tech is independent and not affiliated with any provider or government body.