What I Learn From Comparing Planned Risk With Actual Risk
Before entering a trade, I calculate the risk based on my stop distance and position size.
After the trade closes, I compare the planned risk with the actual result.
The difference may come from slippage, commissions, delayed execution, or changes I made during the trade.
If my actual losses regularly exceed my expectations, I need to understand why.
Risk management isn't complete when I place the stop. I also need to evaluate how my trades behave in real execution.