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HYby u/haruto_y·43mQuestion

Thoughts on managing risk in less liquid Asian micro-caps?

Hey everyone, still pretty green when it comes to actively trading, especially in Asian markets beyond the major indices. I've been doing some due diligence on a few smaller cap stocks in the SET, specifically a couple that look interesting from a fundamental perspective but have really thin daily volumes. My concern, and something I'm trying to wrap my head around, is how to effectively size positions in these types of names without totally exposing myself to the risk of huge slippage on entry/exit, or even worse, getting stuck if liquidity just dries up. I'm usually pretty strict with my 1% max risk per trade, but that feels almost meaningless if I can't get out cleanly. How do more experienced traders here approach risk sizing and execution in these less liquid corners of the market? Are there any specific strategies or indicators you look for beyond just the average daily volume to gauge true liquidity? Really appreciate any insights.

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