Been seeing a lot of new folks jumping into EM assets, which is good, but there's a recurring issue with position sizing that needs to be hammered home. It's not about how much you want to put in, but how much you can afford to lose on that specific trade, proportional to your overall capital. This isn't rocket science, but many treat it like it is.
Let's say you're looking at $USDTHB. It's sitting around 33.61 right now. If your analysis suggests a move to 34.00, but your stop-loss is at 33.40, you've got about 21 pips risk for 39 pips reward. Now, what percentage of your total trading capital are you willing to risk on that 21-pip move? For most pros, it's 1-2%. If you have a $10,000 account and risk 1%, that's $100. So, your position size has to be such that if $USDTHB hits 33.40, you're down $100. Too many people just go 'all-in' or use some arbitrary number. This is how accounts blow up. If your methodology has a win rate of, say, 50%, and you're risking 5-10% per trade, it only takes a few losses in a row to significantly deplete your capital. Understand your risk per trade, then calculate your position size accordingly. It's a fundamental concept, but often overlooked in the chase for the next big score.