Risk & Money — Lesson Plan
KS3 (ages 11–14) · 70 minutes
Learning objectives
- • Calculate a position size from a risk percentage and a stop distance.
- • Explain why small risk keeps a trader in the game.
- • Describe what a stop loss does.
Key vocabulary
risk · stop loss · position size · account · 1% rule
Starter
Backpack task: how much weight can you carry before you fall over? Link to how much of an account to risk.
Main activities
10 min
Work one position-size example on the board: £1,000 account, 1% risk, 20-point stop.
20 min
Pupils complete the Risk & Money lessons and use the in-lesson position sizing calculator.
20 min
Worked examples worksheet: 0.5%, 1% and 2% risk across 10, 20 and 50 point stops.
10 min
Demo: place one trade sized to 1% risk and read the breakdown panel together.
Discussion questions
- • Why is risking 20% of an account dangerous even when you are right?
- • What happens to a £1,000 account after five 10% losses?
- • Should risk change when you feel confident?
Assessment
- • Correct position size for two of three worked examples.
- • Explains the 1% rule in their own words.
Homework
Design a rule sheet for a £100 practice account: max risk per trade and max trades per day.
Safety note
This is the module that protects pupils. Do not skip the stop loss discussion.
Lessons in this module
3. Any Starting Amount Works
Any amount can grow if you protect it and use small, sensible risk.
Open lesson4. Why the Same Trade Can End Differently
The same trade idea can have very different results depending on the spread you pay and the stop distance you choose.
Open lesson