Understanding Position Sizing: More Than Just Leverage

Hey everyone, wanted to quickly touch on position sizing today, not just as a leverage tool, but as a core risk management concept. It's easy to get caught up in the potential gains, but properly sizing your trades is fundamentally about limiting your downside. Think about it this way: if you risk, say, 1% of your total capital per trade, and you're in a losing streak, you need a significantly larger string of losses to materially impact your account than if you were risking 5% or 10% per trade. It's about preserving your capital so you can stay in the game and take advantage of better setups. For example, if you're looking at $NZDCAD at 0.81659 and your stop loss implies a certain number of pips, your position size is what scales that pips risk to a dollar amount that aligns with your 1% (or whatever percentage) risk tolerance. It's less exciting than chasing big returns, but it's what keeps traders around for the long haul. What are your thoughts on setting your risk percentage per trade?