Process
From invalidation to written size
A repeatable path we teach in every session: define where the idea is wrong, measure the distance, size to planned risk, then run a short checklist.
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Name the thesis and the break
State what must remain true for the trade to stay valid. Mark the structural level that means the idea is finished—not a round number chosen for comfort.
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Measure risk in price, then in cash
Convert stop distance into a cash amount using your chosen risk fraction. If the cash figure feels too large, reduce size—do not drag the stop inward.
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Check account heat
Add open risk from other positions. Correlated ideas share a smaller combined budget. Skip when heat is full even if the chart is attractive.
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Run the pre-trade checklist
Five to seven binary gates covering structure, size, news window, and heat. Any “no” means stand down without debate.
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Journal adherence, not only P&L
After the trade, score whether the plan was followed. Wins that broke the plan and losses that obeyed it teach different lessons.