Trading

Position sizing

In shortDeciding how much money to put into a single trade or coin.

A common rule is to risk only 1–2% of the whole portfolio on any one trade: if the stop-loss hits, the loss is small enough to recover from. Position size matters more for survival than picking the right coin.

Example

Portfolio $10,000, risk 1% = $100. Stop-loss 5% below entry → position size $2,000.