Academy

Loss first, potential profit second

The most common beginner mistake is an oversized position. Risk must be calculated before entry, not after the first move against you.

Capital Portfolio amount

This does not have to be your entire wealth. Calculate risk from the capital you actually allocate to market decisions.

Limit Risk per decision

1% of a portfolio means one wrong decision should not destroy the plan. A smaller limit gives more space to learn.

Stop-loss Error distance

The farther the place where you admit error, the smaller the position should be.

Example

PLN 10,000 portfolio, 1% risk

Maximum loss is PLN 100. If the stop-loss is 5% away, the estimated position value is around PLN 2,000. The rest of the portfolio does not need to work in this one decision.

What protects capital

A fixed risk limit per decision.
An exit plan written before entry.
No increasing position after a loss without a new analysis.

What damages a portfolio

All capital in one narrative.
No stop-loss or error condition.
A decision driven by a headline or social media.

Next step Calculate your own limit and save the result in the journal.

If the result feels uncomfortable, reduce risk or skip the decision. That is capital management too.