Practical · Lesson 2
Position Sizing — More Important Than Win Rate
After this lesson you will
- · Explain with recovery math why size decides the account before strategy does.
- · Fix the risk per trade as a percentage of the account.
- · Apply the quantity formula to different stop-loss distances so that the loss amount stays constant.
- · Treat leverage as a resulting value, and check that the stop-loss comes before liquidation.
- · Reflect conviction in size by the number of grounds, not by feeling.
- · Set up a rule that adjusts size in steps according to the environment.
This lesson opens for Lite and above subscribers
What you will learn is listed above. The beginner course is fully available with just a sign-in, no subscription.
What this lesson covers
- 1. Same strategy, different results
- 2. Risk the same amount every time
- 3. The calculation is one line
- 4. Leverage is a resulting value
- 5. Where to reflect conviction
- 6. Cut the theoretical number in half
- 7. Betting big after a winning streak
- 8. Risk is a dial, not a switch
- 9. Here the approaches diverge
- 10. Where this lesson comes back to risk and mindset
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