Should position size be based on intuition or calculated from the stop-loss distance?
One number: per-trade risk is the amount you’d lose if a trade hits its stop loss. It’s roughly equal to the position’s notional value × the stop-loss distance as a percentage.
Set the stop loss first, then work backward from your per-trade risk to determine the position size. That way, the potential loss on each trade stays within a range you’ve calculated in advance.
Remember this instead of memorizing a bunch of jargon. When prices are moving sharply, avoid chasing trades; let the price settle before taking another look.
Here’s the current price: $BTC Current price 64287.16 (24h -4.45%).
#BTC
Just chatting—this isn’t advice.
One number: per-trade risk is the amount you’d lose if a trade hits its stop loss. It’s roughly equal to the position’s notional value × the stop-loss distance as a percentage.
Set the stop loss first, then work backward from your per-trade risk to determine the position size. That way, the potential loss on each trade stays within a range you’ve calculated in advance.
Remember this instead of memorizing a bunch of jargon. When prices are moving sharply, avoid chasing trades; let the price settle before taking another look.
Here’s the current price: $BTC Current price 64287.16 (24h -4.45%).
#BTC
Just chatting—this isn’t advice.
