Skip to main content
MARKET CLOSED
Loading market data…
← Risk first
Position sizing
6 min read · Educational content only, not investment advice.
Start from the stop
Decide the loss you accept before entry: (entry − stop) × quantity.
Quantity = money at risk ÷ points to stop.
Fixed fraction
Keep risk per trade a small, fixed share of capital (for example 0.5–1%) so a losing streak cannot end your account.
Ten straight 1% losses cost about 10%; ten straight 10% losses cost about 65%.
No trade is a decision
"No trade" is valid when the setup is not confirmed. Missing a move costs nothing; forcing one costs capital.
Key takeaways
- Size from the stop, not from conviction.
- Fixed small risk per trade.
- No trade is a valid outcome.