#Write2Earn #learn2earn #Binance #binacealpha #BiananceSquare @Binance_Academy @Binance_South_Asia @matrix 📘 Day 9 — Position Sizing (How to Calculate Lot Size Properly)

Risk management is useless

if position size is wrong.

Let’s calculate step by step.

🔹 Step 1 — Decide Risk %

Professional rule:

Risk only 1% per trade.

Example:

Account = $1,000

1% risk = $10

That means: If stop loss hits → Maximum loss = $10

🔹 Step 2 — Identify Entry & Stop Loss

Example:

Entry = $100

Stop Loss = $95

Risk per unit = $5

🔹 Step 3 — Calculate Position Size

Formula:

Position Size = Risk Amount ÷ Risk Per Unit

Position Size = $10 ÷ $5

Position Size = 2 units

That’s it.

You can only buy 2 units.

🔹 Why Most Traders Blow Accounts

They:

• Enter random lot size

• Increase size after loss

• Use full capital in one trade

That’s gambling.

🧠 Professional Mindset

First calculate risk.

Then calculate size.

Then enter trade.

Never reverse the order.

Structure → Size → Execute.