The Definitive Guide To Position Sizing Free //free\\ Page

Save it. Share it. And next time someone asks "What's the best indicator?"—send them this instead.

Risk per trade = $10,000 x 0.02 = $200 Stop-loss distance = 50 pips Pip value = $10 The Definitive Guide To Position Sizing Free

If you lose 1% twenty times in a row (a terrible losing streak), you have only lost ~18% of your account. You can easily recover. If you lose 10% twice in a row, you are down 19% and the psychological damage is severe. Save it