Understanding Position Sizing: Beyond Just Risking X% per Trade

While often simplified to risking a fixed percentage of your capital, like 1% or 2%, true position sizing also involves considering the volatility of the asset and the specific trade setup; a tight stop on $DKNG near 23.11 with an upside target to 23.89 might allow for a larger share count than a wider stop on a more volatile asset, even if both theoretically risk the same dollar amount from your account.