Risk Management
Position sizing, drawdown control, and surviving evaluation phases.
Can You Get a Margin Call on a Funded Account?
Short answer: can you get a margin call on a funded account? Technically yes, because the trading platform still tracks margin level and will close positions at its stop-out level. In practice it…
Funded Account Rules Explained: Every Limit, What It Measures, and How to Stay Inside It
Short answer: the phrase funded account rules explained covers four caps and one allowed list. A prop firm backs you with its capital. In return it caps your daily loss, your total loss, and how…
Prop Firm Consistency Calculator: Formula, Worked Table and the 50 Percent Check
Short answer: a prop firm consistency calculator divides your largest winning day or trade by your total net profit and shows the result as a consistency percentage. If that percentage sits above…
Trading Drawdown Calculator: Formulas, Breach Lines and Worked Examples
Short answer: a trading drawdown calculator takes your peak balance, your current balance and your loss limit. It then tells you how far you have fallen and how much room is left before a breach.…
Anchoring Bias in Trading: How Entry Prices, Round Numbers and Old Highs Hijack Your Decisions
Short answer: anchoring bias in trading is the habit of judging where price should go by a number already in your head. The usual anchors are your own entry price, a round number, and a prior high…
Gamblers Fallacy in Trading: Why a Streak Owes You Nothing
Short answer: the gamblers fallacy in trading is the belief that a run of similar outcomes makes the opposite outcome more likely next. Five red days do not make a green day more probable. Four…
Loss Aversion in Trading: Why Losses Hurt More and How to Trade Around It
Short answer: loss aversion in trading means a loss of a given size hurts far more than an equal gain feels good. A 100 loss stings more than a 100 win pleases. The result is lopsided behavior:…
Recency Bias in Trading: Why the Last Few Trades Weigh Too Much
Short answer: recency bias in trading is the habit of letting the most recent trades, candles or sessions count for more than the full record justifies. Five losers in a row feel like a broken…
Sunk Cost Fallacy in Trading: Why You Hold Losers and How to Stop
Short answer: the sunk cost fallacy in trading is holding, adding to, or widening a losing position because of what it has already cost you. The market no longer supports the trade; the money…
The Kelly Criterion: How to Size Bets and Trades From Your Edge
Short answer: the Kelly criterion is a formula for the fraction of your bankroll to risk on a bet or trade that has positive expected value. It needs two inputs: your probability of winning and…
What Is Mark to Market and Why Does It Matter to Traders?
Short answer: mark to market means valuing an asset or an open position at its current market price instead of the price you paid. Accountants use it for financial reporting so a balance sheet…
Martingale Strategy: How It Works, Why It Breaks, and What Traders Can Learn From It
Short answer: the martingale strategy is a betting system where you double your stake after every loss. The first win then recovers every earlier loss and adds one unit of profit. It works on…