Understanding Position Sizing in Practice

Hey everyone, wanted to quickly break down position sizing, something I'm still getting a handle on. It's basically determining how many units of an asset to buy or sell based on your total capital and risk tolerance per trade. For example, if you risk 1% of a $10,000 account ($100) and your stop loss implies a $2 move, you'd buy 50 shares. This isn't about profit, but capital preservation, preventing one bad trade from wiping you out, especially important in volatile markets or with assets like $DEFI, which, even without significant movement today at $72.2163, can swing quite a bit.