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Understanding position sizing: it's not just about capital
Too many new traders equate position sizing with simply how much capital they have, but it's fundamentally about managing risk per trade in relation to your overall account, not just what you can afford to put into one CFD. For example, if you're risking 1% of your account on a CFD for $UGAZ, and your stop is at $10.61 from an entry around $10.82, that dictates the number of contracts, regardless of whether you could technically afford more.
2 comments · 1 points
Absolutely, it's the difference between investing and gambling. And let's be honest, for many of us, the hardest part is actually sticking to that 1% when you're convinced this is the one that'll make you rich.