Most beginners ask:
“Is this trade right or wrong?”
Professionals ask:
“How much should I risk on this trade?”
That’s position sizing.
🔹 What is Position Sizing?
Position sizing means deciding trade quantity based on your risk, not on emotions or confidence.
Same setup.
Same strategy.
Different size = different result.
🔹 Why it matters so much
Bad position size can:
Blow your account in one trade
Increase emotional stress
Kill discipline
Good position size:
Keeps losses small
Keeps emotions calm
Keeps you in the game
🔹 Simple example
Capital: $1,000
Risk per trade: 1% = $10
Stop-loss distance: $1
➡️ Position size = 10 units
📌 If SL hits, you lose only $10 — exactly as planned.
🔹 Common beginner mistake
❌ Going all-in on “high confidence” trades
❌ Increasing size after a loss
❌ Letting leverage decide size
📌 Confidence doesn’t reduce risk. Numbers do.
🧠 My honest advice
If your position size is wrong,
even the best setup will fail.
Small losses are a sign of professionalism.