Understanding Position Sizing for Asian Equities

Hey everyone, been diving deeper into risk management and a concept that’s really clicking for me is position sizing, especially in volatile markets like we sometimes see with $NIKKEI. It's not just about setting a stop-loss; it's about figuring out how many shares or units you can buy given your maximum acceptable risk per trade. For example, if I'm looking at a stock in the SET and my stop is 5% below entry, but I'm only willing to risk 1% of my total capital on that one trade, the position size gets dictated by that 1% risk divided by the dollar value of that 5% stop. It makes so much sense for capital preservation, rather than just buying an arbitrary number of shares.