Ask any experienced trader what keeps them in the game, and they'll rarely say "great entries." They'll say risk control. Position sizing is how you apply it.
Why it matters more than your entries
Even the best strategy has losing streaks. If you risk too much per trade, a normal streak can wipe your account. Proper sizing makes losses survivable and keeps you trading long enough for your edge to play out.
The 1-2% rule
Never risk more than 1% to 2% of your account on a single trade. On a 5,000 account, that's 50 to 100 of risk per trade — not per position size, but the maximum you'd lose if your stop is hit.
How to calculate your lot size
- Decide your risk amount (e.g. 1% of the account).
- Measure the distance from entry to stop loss in pips.
- Divide your risk amount by (stop distance x pip value) to get the lot size.
Your dashboard's Trading Tools include a position-size calculator that does this math for you — use it before every trade.
The mistake almost everyone makes
Sizing by "how much I want to win" instead of "how much I can lose." A wide stop with a big lot feels exciting until one trade erases a week of gains. Let the stop distance decide the size — always.
The bottom line
Fix your risk per trade as a small, constant percentage, and let position sizing flow from your stop. Do this consistently and you've already beaten most traders.
Disclaimer: Trading involves risk, and past results do not guarantee future results. This content is educational and is not investment advice.
