Most retail traders lose accounts not from bad entries but from incorrect position sizing. One oversized trade can erase weeks of consistent gains in a single session.
Professional forex traders — especially those funded through FTMO, MyForexFunds, The5ers, and similar prop firms — treat position sizing as the non-negotiable foundation of every trade. The lot size is what determines your actual dollar risk, regardless of what percentage you intend to risk.
For prop firm challenges with 4–5% daily loss limits and 8–10% max drawdown rules, a single over-sized losing trade can end your evaluation on day one. Risk 0.5%–1% per trade and protect the account at all costs.