Understanding Position Sizing Beyond 'X% of Account'

When we talk about position sizing, it's not just about risking 1-2% of your account per trade. That's a good start, but a more nuanced approach ties it directly to your stop loss and the potential reward. For example, if you're looking at $BRN trading around 0.98, and your analysis suggests a stop at 0.96 and a target at 1.05, your risk (0.02) is much smaller than your reward (0.07). The real art is in adjusting your position size based on that actual monetary risk for the specific setup, not just a blanket percentage of your total equity.