Position Sizing 101: The One Rule Most New Traders Skip
Entry timing gets all the attention. Position sizing is what actually keeps you in the game.
Ask ten new traders about their strategy and you'll hear about entries, indicators, and setups. Ask about position sizing and most will shrug — yet it's the single variable most correlated with long-term survival.
A simple, durable rule: risk a fixed, small percentage of total capital per trade — commonly 1-2% — regardless of how confident the setup feels. Confidence is not a risk-management input.
This single habit does more to smooth an equity curve than any indicator combination ever will.
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