Risk Management: Protect Your Capital

At Goldman Sachs, risk management wasn't optional - it was everything. Traders who blew up didn't get second chances. This course teaches you the institutional risk framework that keeps professionals in the game. Position sizing is where most retail traders fail. You'll learn the 1% rule, Kelly criterion, and volatility-adjusted sizing. We cover how to size positions based on your stop loss, not arbitrary dollar amounts. Stop loss placement is an art. You'll learn technical stops, ATR-based stops, and time stops. More importantly, you'll understand when to move stops and when to let trades breathe. Mental stops are for amateurs. Portfolio risk goes beyond individual trades. You'll learn correlation analysis, sector exposure limits, and how to stress test your portfolio. We cover what happens during black swan events and how to survive them. The final section addresses trading psychology and drawdown management. You'll learn to reduce size during losing streaks, recognize tilt, and maintain discipline when it matters most.

Alex Krieger

Former Goldman Sachs Quant

4.96 (12400 students)