Many traders lose not because their entries are bad — but because they risk too much on a single trade.

Understanding position sizing — how much of your capital to allocate per trade — is one of the most important skills for long-term trading success. 💡

💡 The Golden Rule:

👉 Never risk 1–2% or less out of your total capital on a single trade.

📊 Example:

If your balance is $USDT 1,000, your maximum risk per trade should be only $USDT 10–20.

That way, even if you lose 5–6 trades in a row, your account stays safe and manageable.

đŸ’Ș Why Position Sizing Matters:

✅ Protects your account from big drawdowns

✅ Keeps emotions under control during losses

✅ Builds confidence and consistency

✅ Helps compound your profits over time

🧠 Pro Tips for Smart Position Sizing:

💡 Always calculate your position size before entering a trade.

💡 Use a Position Size Calculator for accuracy.

💡 Never increase your trade size after a loss — that’s revenge trading.

💡 Keep your risk percentage steady for consistent growth.

📈 Simple Example:

Let’s say your total capital = $1,000

You decide to risk 2% per trade → that’s $20 risk.

If your stop loss is 5%, your trade size should be $400, because 5% of $400 = $20 (your risk limit).

Even if you lose, you’re only down a small amount — not your whole portfolio.

⚠ Final Thought:

Position sizing isn’t about limiting profits — it’s about protecting your capital so you can keep trading another day.

Remember:

“The goal is to stay in the game for a long — but not to win every trade.” đŸ’Ș

#tradingtechnique #RiskManagement #PortfolioManagement