Understanding Position Sizing: Not Just a Guideline

It's easy to dismiss position sizing as a mere best practice, but for serious traders, it's fundamental risk management. Consider the implication of a flat 2% risk per trade: if you're holding $BA and it moves against you, a stop loss at 215.70, from today's 218.12, implies a specific share count to keep your loss to that 2%. Without this discipline, a series of seemingly small losses can quickly decimate capital, making recovery exponentially harder. It's not about being right or wrong on a trade, but about surviving long enough to be profitable.