Risk Management
Position size, stops, and protecting an account.
← Learning
Position sizing from account risk
1 minSize follows from two numbers you already know: what you are willing to lose, and where the trade is wrong. The calculation Risk amount divided by stop distance...
Where a stop actually belongs
1 minA stop marks the level at which your reason for the trade is no longer true. If you cannot say what would make you wrong, you do not have a trade yet.