Most traders focus on entry timing. Professionals focus on risk per trade. That’s the difference.

🧠 Same Setup, Different Outcome

Two traders take the same trade. Both enter at the same price. Both use the same stop.

đŸ”žïžTrader A risks 20% of his account.

đŸ”čTrader B risks 2%.

The trade loses.

đŸ”žïžTrader A is emotionally shaken.

đŸ”čTrader B moves to the next setup.

Same analysis. Different position size. Different future.

📉 The Math of Survival

đŸ”čLose 10% → need 11% to recover

đŸ”čLose 25% → need 33%

đŸ”čLose 50% → need 100%

Big losses don’t come from being wrong. They come from being oversized.

đŸ›Ąïž The Professional Rule

‱ Risk 1–2% per trade

‱ Define invalidation before entry

‱ Never increase size emotionally

Your goal isn’t to win every trade. It’s to survive long enough for your edge to play out.

📐 Pro Tip (The Missing Link)

Calculate your position size based on the distance to your stop-loss, not the dollar amount you feel like risking.

Example:

If you risk 1% of a $10,000 account → $100 max loss.

If your stop is 5% away from entry → position size should be $2,000.

đŸ”žïžNot random.

đŸ”žïžNot emotional.

đŸ”žïžMathematical.

That’s how you bridge the gap between why and how.

💡 The Truth

Good sizing can save a bad entry. Bad sizing can destroy a good one. The market rewards discipline not boldness.

What’s your average risk per trade?

#PositionSizing #RiskManagement #TradingPsychology #TradeSmart #CapitalPreservation

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