Risk and Trade

Management
Pips2Profit
Cameron Benson
 Risk Management
● Risk will be determined by
what stage of your trading
journey you are in.
● In the early stages, you
want to risk as LITTLE AS
POSSIBLE.
● It is NOT about making
money, it is about
perfecting the process,
learning about yourself,
and learning EXACTLY
what you are looking for.
 Trading Plan
Must Include:

1. What setup are you taking?

2. What quality setup is it?
3. How many pips are you willing to risk?
4. What is your risk %?
5. Entry Plan?
6. Breakeven Plan?
7. Exit Plan?
 Risk Management: Beginner
1. Focus on the process, NOT the PNL. Look to improve:
a. Trading without emotion
b. Levels
c. Timings
d. Price action
e. Pattern recognition
f. Setup Identification
g. Pair Selection
h. Master YOURSELF before attempting to move on to the next stage of your trading…
2. Should be on DEMO and trading with LESS THAN 0.5% ***TIP: Create an emotional attachment to your demo account by
creating a challenge for yourself. For example: Must achieve profitability for 2-3 months. If you lose more than 5-10% in a
day, you must start over from day 1.

Mindset:

1. Get better at trading. The money will come as a result.

2. Trading is NOT a get rich quick.
3. Over risking will not make you more money, it will only lose you money faster.
4. FOCUS ON % AND NOT PNL!!!!!!!!!!!
a. Allows you to grow into larger account.
i. 1% of $1.00 is still 1%. Just as 1% of 1,000,000 is still 1%.
b. There is emotional attachment to PNL and NOT %.
Risk Management: Intermediate

1. Continue to improve your trading consistency and all of the skills mentioned in the previous slide.
2. Good at identifying trades, and executing but still struggling to consistently take profits.
a. Feels like there is something missing. There isn't, you just need more practice and to keep chipping away at your
own emotions.
3. Can begin to practice a trading plan that will take your trading to the next level.
a. Better setups will now be allowed to risk up to 1-2%.
b. Mid grade setups will be allowed to risk up to 0.5-1%.
c. Low grade setups will risk no more than 0.5%.
i. Develops discipline
ii. Gets you used to using different risk parameters for different setups.
Risk Management: Advanced
1. You have become a consistent trader. Profits come easily to you now.
2. You feel nothing, while in the trade and after. Win or lose.
3. Even with the reduced risk, you have a upwards facing PNL curve without any large dips.
4. You have passed the “Demo account challenge”.
5. Complete business mindset. You have developed a sense for what you are looking for, which pairs you should be looking
at, and when the best trades are presenting.
6. The thought of risking more to make more does NOT excite you. You are ONLY doing it because you believe you have
perfected the process and are ready to begin the next phase of your trading.

High Grade Setups: Up to 5% Risk

Mid Grade: Up to 3% Risk

Low Grade: Up to 1% Risk

VERY IMPORTANT: Just because you are now allowing yourself to risk more does NOT mean you can just start risking 5% on
every trade!!!!!!!!!!!!!! Trading maturity is realising the setup is 90/10 probability but not capable of traveling as many pips,
so you reduce risk accordingly.
 Trade Management
● Scaling In: Process of building a position in multiple entries, adding up to the max risk you are willing to risk on that
trade.
○ Systematic method of adding in. NOT just spam clicking the button..
● Pyramiding: Process of adding to an already existing position, while remaining at breakeven with the belief that the
pullback will result in further movement in your trades intended direction.
Video of me explaining scaling VS pyramiding
 Exits
1. At a certain risk to reward
2. Looking left at swings (1M
and 15M)
3. 100 Pip box/Quarter Levels
4. Opening Range
5. 50% of a consolidation
6. 100% of a consolidation
7. Range Expansion of a
consolidation.

IMPORTANT: I care about risk to

reward and locking in profits, not
being right about direction…