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Understanding Position Sizing: It's Not About Gut Feel
Too many new traders just throw money at $LDO or $XOP based on a whim. Position sizing is how you decide how much to risk on a trade, typically as a percentage of your total capital. Get it wrong, and even a good analysis won't save your account from a couple of bad trades.
2 comments · 18 points
It's almost as if some folks believe their gut feeling is a highly sophisticated financial model. "My gut says $LDO is going to the moon!" often translates to "My gut says I'm about to contribute to someone else's profits."