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Position size, entry, stop loss and amount risked per trade should be relative to each other. Understanding how these are connected and being disciplined enough to incorporate this into your trading system and actually follow it on every trade will be a turning point in your trading career.

In this formula there must be a fixed variable and for me it is amount risked. In 5 minutes once you’re done reading this you’ll know why.

There are 5 steps you need to take to measure your risk and determine position size.

Step 1: Deciding on your account balance

The first decision to be made is how much capital you are going to dedicate towards trading. This is entirely up to you but there are 2 basic rules I urge you to…

About

Tortoise Trading

Crypto Investing. Market Analysis. Trading. Behavioral Economics. Traditional Markets and Macro. https://twitter.com/TortoiseTrading

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