FSP Academy
Glossary

Position sizing

Deciding how large a trade to take so a single loss can't hurt you badly.

Most consistent traders risk a small fixed fraction of equity per trade (often around 1%), so a string of losses is survivable. Sizing by a fixed risk amount — not a fixed share count — keeps your downside constant as your account and volatility change.

Learn it properly
Risk Management course →
Position sizing, stops, and surviving the drawdowns.

Put it into practice. Log a trade, see it in your stats.

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