Module 8 – Money Management & Execution
This is where 90% of traders fail. Not on entries, not on signals — 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: spend 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.
That means a $10,000 account risks $100–$200 max per trade — no exceptions.
2.2 Position Sizing Formula
Formula: (Account × Risk %) ÷ (Stop-Loss in Pips × Pip Value) = Lot Size
This turns risk into math, not emotion.
Once you calculate position size properly, you’ll never have to “guess” your lot size again.
2.3 The 1:3 Risk-to-Reward Ratio
- Risk 1 unit to gain at least 3.
- Even with 40% win rate, you’ll still end up profitable.
- Anything below 1:2 R:R is charity work for the market.
3. Trade Management Rules
- Set and forget: Once trade is active, stop adjusting entries emotionally.
- Move stop-loss to breakeven only after price moves 1:1 in your favor.
- 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
80% of trading is psychological. You can’t control the market — only your reactions to it.
4.1 Emotional Triggers
- Fear of Missing Out (FOMO): Leads to chasing bad trades. Solution: set alerts, not impulses.
- Revenge Trading: Trying to earn back a loss instantly. Solution: step away — no trading after two losses in a row.
- Overconfidence: After a win streak, you loosen rules. Solution: trade size remains fixed until account grows by 10%.
4.2 The 3 Golden Habits
- Stick to one system until you have 100 trades logged.
- Journal every trade — reason, result, and emotion.
- End every week reviewing your top 3 mistakes and 3 wins.
Remember: The goal is not to avoid losses — it’s to manage them without emotion.
5. Trade Journaling – The Mirror of Mastery
Your journal is your trading coach.
It reveals patterns you don’t notice in the heat of battle.
What to Record
- Pair or Asset
- Entry & Exit Price
- Setup Type (Pin Bar, Engulfing, etc.)
- Risk % and R:R Target
- Outcome (Win/Loss)
- Emotion Before & After
- Screenshot of Entry Zone
Weekly Review
- Count total trades and winning percentage.
- Calculate average R:R.
- Identify emotional errors (revenge, FOMO, hesitation).
- Write one adjustment goal for next week.
6. Scaling & Compounding
Consistency + Risk Control = Compounding Power.
You don’t need to double your account in a month — that’s gambling.
Aim for 3–5% growth per month with zero blow-ups.
- Increase risk size only when your equity grows 10% or more.
- Withdraw profits quarterly to lock in gains.
- Focus on percentage growth, not dollars — it keeps you disciplined.
Remember: A 5% monthly gain compounded for a year = 80% growth.
That’s how you build wealth quietly, not chase noise loudly.
7. The Execution Checklist
Before every trade, confirm:
- ✅ Higher timeframe trend direction (Module 6)
- ✅ Key zone identified (Module 5)
- ✅ Structure confirmation (Module 4)
- ✅ Candlestick signal (Module 7)
- ✅ Proper risk size calculated (Module 8)
If any box isn’t checked — no trade.
Discipline is your edge.
8. Pro Insight
Trading mastery isn’t about prediction — it’s about execution under pressure.
Your results will always mirror your discipline, not your potential.
“Winning traders don’t control the market — they control themselves.”
From here forward, treat every trade as a business decision.
Manage risk like an investor, execute like a machine, and review like a scientist.
That’s the Born 2 Dominate way.