The Definitive Guide to Position Sizing

The Definitive Guide to Position Sizing explains how traders determine the amount of money to invest in each trade to manage risk effectively. It involves assessing factors like account size, risk tolerance, and market volatility to decide the optimal trade size. Proper position sizing helps prevent significant losses and ensures consistent growth by balancing potential gains against potential risks. Essentially, it’s about planning how much to buy or sell so your overall trading remains controlled and aligned with your financial goals, rather than risking too much on any single trade.