Understanding Position Sizing Beyond 'Don't Lose Too Much'

Been diving into risk management lately, and it's clearer than ever how crucial position sizing is, especially with the volatility we've seen in things like $SPY. It's not just about setting a stop-loss; it's about calculating how many units of an asset you can buy or sell based on your pre-determined risk per trade, the stop-loss level, and your account size. For example, if you decide you're only willing to risk 1% of your capital per trade, and you're looking at an entry for $UNI at its current ~3.128 with a stop at, say, 2.80, that dictates the exact number of UNI tokens you can acquire. It's really the practical application of your risk tolerance, allowing you to survive losing streaks and remain in the game, which is something I'm trying to internalize better.