moonchild
VIP Contributor
Position sizing is basically how you ration your account and take profits or control risk in your trading, as the famous trading coach Van Tharp said in his book 'Exits are everything' in trading you'll be wrong most of the times, how can you make more when you're right? That's what position sizing is all about.
The most popular way is to enter a trade with 1/5 of your initial position and add to it as the trade progresses, you add a fifth till you scale in to the trade, this position sizing helps keep your losses small and your profits large instead of going all in at the get go.
The most popular way is to enter a trade with 1/5 of your initial position and add to it as the trade progresses, you add a fifth till you scale in to the trade, this position sizing helps keep your losses small and your profits large instead of going all in at the get go.
