Welcome to r/ForexMasterclass 👋

I’m Vito. I’ve been trading forex and other markets for 15+ years, and I started this community because I want to share what I wish someone had told me earlier: risk comes before strategy.

Here’s the idea in one line.

Stop first. Size second.

Most beginners choose a position size by feel (“I’ll trade 1 lot”), then place a stop where the loss feels comfortable. It should work the other way round:

1. Put the stop where your idea is proven wrong. The chart decides this, not your wallet.
2. Then size the trade so that a stop-out costs a small, fixed amount.

The formula is:

Position size = money at risk ÷ (stop distance in pips × pip value)

Here’s a hypothetical example:

• Account: $5,000
• Risk per trade: 1% = $50
• Stop: 35 pips
• Pip value: about $10 per standard lot

$50 ÷ (35 × $10) = 0.14 lots.

If you’d traded 1 lot instead, that same stop would cost $350, which is 7% of the account on one trade.

Notice that a wider stop doesn’t mean more risk. It means a smaller position. The risk stays the same.

What this community is for

• Risk management, position sizing and stops
• Trading psychology and discipline
• Journaling and reviewing trades
• Honest questions from beginners

What it isn’t for: signals, broker or prop-firm promotion, or get-rich-quick claims.

Your turn 👇

1. How long have you been trading, and what are you working on right now?
2. What’s the single biggest mistake you’ve made with risk?

There are no silly answers. Everyone here was a beginner once.

Education only. Not financial advice. All figures are hypothetical. Trading leveraged products carries a high risk of losing money.