Account Management
Every trade gets planned around its own risk and reward, but an account can still get into real trouble even when every individual trade was managed properly. The thing that needs managing is the exposure across all of them together, not each one in isolation. Total exposure, not just individual risk Three trades each risking 1% looks conservative on paper, but if all three are long GER40, long the Dow, and long a correlated part of a portfolio at the same time, a single macro move against risk assets hits all three at once. The real exposure that day is closer to 3% than 1%. Correlated positions need to be sized as a group, not as three separate 1% decisions that happen to move together. ...