Understanding Position Sizing Beyond 'X% of Account'

Hey everyone, been diving deeper into risk management lately, and wanted to share a thought on position sizing that's stuck with me. We all hear 'don't risk more than X% of your account,' which is a solid starting point. But it's really about aligning your position size with your stop loss and your total dollar risk for that specific trade, not just a blanket percentage.

For example, if you're looking at $NFLX and your analysis suggests a stop below 66.00, and your account allows for a $500 risk on this trade, you'd calculate your shares based on that $1.60 per share risk (67.60 entry - 66.00 stop). This means you'd only take about 312 shares (500 / 1.60). It's more granular and ties directly into your actual trade setup rather than just a general account allocation. Curious to hear how others approach this, especially on more volatile swings like $IDR saw today.