Lesson Learned: Sizing into volatility

Thought I'd share a quick lesson learned that's cost me a few times, hoping it helps someone else avoid the same trap. It's about position sizing, specifically when a market gets particularly volatile. I've found myself, more than once, sizing into what looked like a clear trend breakout, only for the price to whip around violently and take out my stop with a massive candle before resuming the original direction. The mistake wasn't necessarily the direction call, but the assumption that the range of movement would remain consistent with prior periods, leading to oversized positions for the prevailing volatility. Now, I always re-evaluate my stops and adjust my size downwards significantly if I see price action becoming erratic, even if the general direction still seems valid. Saved me a few headaches since.