Want to know the real reason most swing traders fail?
It’s not bad entries or exits... it’s position sizing.
If you're tired of watching your profits vanish in a few bad trades, you need to master this one skill.
Here are 8 simple rules to protect your capital and trade smarter.👇
It’s not bad entries or exits... it’s position sizing.
If you're tired of watching your profits vanish in a few bad trades, you need to master this one skill.
Here are 8 simple rules to protect your capital and trade smarter.👇
Rule 1: Never risk more than 1-2% of your capital on a single trade.
This ensures that no single loss will blow up your account.
Swing trading is about survival first, profits second. x.com
This ensures that no single loss will blow up your account.
Swing trading is about survival first, profits second. x.com
Rule 2: Adjust position size based on stop-loss distance.
- Tight stop-loss? Take a larger position.
- Wide stop-loss? Reduce your position size.
Always calculate risk per trade before entering. x.com
- Tight stop-loss? Take a larger position.
- Wide stop-loss? Reduce your position size.
Always calculate risk per trade before entering. x.com
Rule 3: Use volatility to guide position sizing.
High-volatility stocks = smaller positions.
Low-volatility stocks = larger positions.
This helps you avoid oversized losses during wild swings. x.com
High-volatility stocks = smaller positions.
Low-volatility stocks = larger positions.
This helps you avoid oversized losses during wild swings. x.com
Rule 4: Keep a consistent risk % across trades.
Don’t risk 1% on one trade and 5% on another.
Consistency in risk keeps your performance steady over time. x.com
Don’t risk 1% on one trade and 5% on another.
Consistency in risk keeps your performance steady over time. x.com
Rule 5: Never go all in, no matter how confident you feel.
Markets are unpredictable. Even the “perfect setup” can fail.
Confidence kills discipline—stick to your risk limits. x.com
Markets are unpredictable. Even the “perfect setup” can fail.
Confidence kills discipline—stick to your risk limits. x.com
Rule 6: Diversify your trades.
Avoid overloading your portfolio with similar trades.
If one sector tanks, your entire account shouldn’t go with it. x.com
Avoid overloading your portfolio with similar trades.
If one sector tanks, your entire account shouldn’t go with it. x.com
Rule 7: Recalculate position size as your capital grows.
Start with smaller sizes when your account is small.
As you grow, increase size gradually while maintaining the same risk %. x.com
Start with smaller sizes when your account is small.
As you grow, increase size gradually while maintaining the same risk %. x.com
Rule 8: Respect the math.
Position sizing isn’t guesswork—it’s part of your edge.
A disciplined approach protects you from emotional decisions and ensures long-term success. x.com
Position sizing isn’t guesswork—it’s part of your edge.
A disciplined approach protects you from emotional decisions and ensures long-term success. x.com
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