Understanding Position Sizing: Not Just How Much, But Why

Too many new traders fixate on what to trade, but how much to risk on any single trade is often the difference between staying in the game and blowing up an account. For instance, chasing $TOP's +5.86% daily jump without a clear position sizing strategy is just gambling, not trading; proper sizing ensures that even if your $TOP long goes south after hitting 11.705, it won't decimate your capital, allowing you to catch the next setup, perhaps in a less volatile name like $CSPR.