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Position sizing cannot prevent losses — but it determines whether losses destroy your account or simply reduce it. Here's what the math shows about survival, drawdown, and long-term profitability.
Position sizing failures are rarely mathematical — they're conceptual. These 5 misconceptions account for the majority of retail trader losses, and most traders hold at least two of them simultaneously.
Removing human judgment from position sizing eliminates one of the biggest sources of trading variance. The data on consistency-driven sizing is clear: it outperforms discretionary sizing over any meaningful sample size.
There is no single correct answer to how much you should risk per trade — but there is a mathematically optimal range based on your account size, strategy, and experience level. This guide gives you the data to find yours.