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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By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.