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KAby u/kaitoyang·20mQuestion

New here, question on position sizing consistency

Hey everyone, just joined. Been trading equities for a little over a year, mostly discretionary, small accounts. I've been trying to get a handle on position sizing consistently. My current method is just a fixed dollar amount per trade, which feels a bit arbitrary and doesn't really scale with my conviction or the actual volatility of the setup. I've looked into the fixed fractional and ATR methods, but they seem to swing position sizes pretty wildly sometimes, which feels like it's introducing more risk than it mitigates in choppy markets.

For those of you with more experience, especially in equities, how do you approach position sizing for different setups? Do you stick to one method religiously, or does it vary based on market conditions or the specific stock?

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