Position Sizing1/5
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The #1 Skill in Trading
Position sizing determines how many shares to buy. It's the difference between a manageable loss and a portfolio-destroying disaster.
The 1% Rule: Never risk more than 1% of your total portfolio on a single trade.
Portfolio: $100,000 Max risk per trade: $1,000
This means even 10 consecutive losses only cost you 10% — you're still in the game.
Key termsposition sizing1% rule