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♟ When it Comes to Positioning - Size Matters

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"When position sizing, it's important to determine the amount of capital to allocate to a particular investment or trade."

Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance

Karim Rahemtulla

Last week I talked about stop losses as one of my top strategies to minimize risk when trading.

Today, I'm going over another important risk management strategy - position sizing.

Position sizing is the process of determining the amount of capital to allocate to a particular investment or trade. It involves deciding how much of your portfolio or trading account to commit to a specific asset or trade opportunity.

It's also crucial for managing risk and maximizing returns, as it helps traders and investors control the impact of each trade on their overall portfolio performance.

It considers factors such as risk tolerance, account size, trading strategy, and market conditions to determine the appropriate size of each position.

Click here to learn how to position size like a pro

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