Why most people fail: the target pulls, the limits push

Compare risk per trade with the daily loss budget, and see how many losses in a row each size can take.

Module 14 of 26, Funded accounts: how prop firm challenges work. Lesson 3 of 4, about 12 minutes.

The takeaway

Your size decides how many losses in a row you can take. Work that number out before the first trade, not after the third loss.

This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.

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General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.

Concepts in this lesson

• Drawdown
• Position sizing

Previous lesson

• The rules, with numbers: daily loss and maximum loss

Next lesson

• Sizing so a normal losing streak cannot end the challenge

Related lessons

• Stop losses and take profits
• Pips, lots and sizing a forex trade
• Sizing a trade by how much you can lose
• Average result per trade, and Kelly sizing

This lesson's module

• Funded accounts: how prop firm challenges work
• All 26 modules and 157 lessons