Why Account Size Should Not Determine Your Risk Management

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 This is an example of one of the bonus videos from my technical trading video newsletter. In it I explain how to position size properly to manage your risk by keeping your losses to a small percent of your total trading capital.

  1. A 20% position of your total trading capital gives you a potential 5% stop loss on your position to equal 1% of total trading capital.
  2. A 10% position of your total trading capital gives you a potential 10% stop loss on your position to equal 1% of total trading capital.
  3. A 5% position of your total trading capital gives you a potential 20% stop loss on your position to equal 1% of total trading capital.

 

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