Risk Management
Position Sizing
Also called: position size, position sizing, sizing, sized up, sized down, size up
How much of the portfolio to allocate to a single trade, determined by how far the stop is from entry and how much dollar risk I'm willing to take. When my stop is tight I can take a larger position with the same risk. Size is a byproduct of good entries not a decision to bet big, and I let recent results determine size not conviction.
In Context
“But the market turned dangerous Friday with original leaders like CRWD, DAVE, and PLTR breaking below their 30-week averages so I sized down hard.”
Tough Month, Year is Young·Digest
“Sized down Friday as market looked dangerous.”
Tough Month, Year is Young·Digest
“Sized down to just TSLA and GOOGL and bought some SQQQ as a hedge.”
Tough Month, Year is Young·Digest
“Tough to size up if it opens higher.”
Shaken Out But Not Moving On·Digest
“I think recognizing where you are in the cycle helps calibrate expectations and position sizing.”
Shaken Out But Not Moving On·Digest