
Position size is not a feeling: it is a calculation. The starting point is not the hoped-for gain, but the loss accepted if the analysis is wrong.
Three inputs are enough: risk in currency, stop distance in points, and point value for the instrument.
Reading of 2026-10-24 — quotes from public sources; they are not a forecast.
Read today’s market briefing →1) Risk = capital × fixed percentage (often 0.5 to 2%). 2) Stop distance, in points or percent. 3) Size = risk ÷ (distance × point value).
The order matters: analysis places the stop, the stop sets the size. Never the other way round.
A trader winning 60% of the time can lose money if the average loss exceeds the average gain. A trader winning 40% can make money when the reverse holds.
The risk/reward ratio and costs (spread, commissions, slippage) decide more than the win rate.
Write a daily and a weekly loss limit in advance. When they are hit, the session is over — even if “an obvious trade” appears.
It is the simplest and most effective rule, because it removes the emotional decision at the worst possible time.
Many professionals work between 0.5% and 2% of capital per trade. The right number is the one that leaves you calm after five losses in a row — test it in a simulator.
Yes, mechanically: it amplifies every move. Leverage does not change your ideal position size, it only changes the margin tied up.
No. Too tight a stop gets taken out by normal market noise; too wide a stop breaks the sizing. The right stop is the one the chart level justifies.
Yes: in the simulator, with virtual capital, a journal and a challenge mode that enforces a daily loss cap.
Quote sources: public providers (CNBC, Yahoo Finance, CoinGecko, ECB, Forex Factory economic calendar). Educational content: not investment advice, not a forecast.