What it means
Position sizing turns trade risk into a quantity decision so the trader knows how large the trade should be.
What to watch
Sizing should reflect actual stop distance, tick value, commissions, and slippage, not just the chart idea.
Glossary
The process of deciding how many shares, contracts, or units to trade based on risk and account size.
Position sizing turns trade risk into a quantity decision so the trader knows how large the trade should be.
Sizing should reflect actual stop distance, tick value, commissions, and slippage, not just the chart idea.