Start Here: Risk First

Before you look at charts, indicators, or strategies — start with risk. This is the foundation everything else is built on.

Your First Three Questions

  1. What is my total risk budget? How much of your capital can you afford to lose entirely — and still be financially and emotionally fine?
  2. What is my per-trade risk? What percentage of your account will you risk on any single trade? (Hint: if it's more than 2%, reconsider.)
  3. What is my maximum drawdown tolerance? At what point will you stop trading and re-evaluate your system?

The Learning Path

1. Risk

Position sizing, drawdown, ruin probability, cost of trading.

2. Research

Hypothesis testing, backtesting pitfalls, overfitting, sample size.

3. Execution

Automation, order types, slippage, live vs. paper trading.

4. Psychology

Cognitive biases, emotional discipline, and the mental game of trading.

5. Markets

Market microstructure, derivatives, market makers, and market cycles.

6. Data

On-chain analytics, statistical thinking, and performance metrics.

7. Portfolio

Diversification, correlation, capital allocation, and portfolio-level risk.