Regarding position sizing and stop loss placement

asked by u/diegowilliams · 2d · 0 answers

Hey everyone, fairly new here, been trading sim for a few months and starting to dip toes in micro lots on $EURUSD. I'm struggling with something that feels fundamental: how do you seasoned guys balance position sizing relative to your stop loss? I see the advice to size based on a fixed risk per trade (e.g., 1% of account), but if my stop is tight, my position size gets huge. Conversely, a wider stop means a tiny position. It feels like I'm constantly adjusting one to fit the other, and I'm not sure which should be the primary driver. Is there a mental trick or a more systematic way to think about this that I'm missing?

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