WickCheck / Trading school / Position sizing
Position sizingBeginner
Choosing the trade size so a stop-out costs a fixed amount, usually a small % of the account.
What it means
If you risk 1% of $10,000 and your stop is 25 pips away on EUR/USD, you trade 0.4 lots. A wider stop means a smaller position, so every loss costs the same. This is the single most important habit for staying in the game.
How to spot it
- Fix the risk first, then let the stop distance decide the size.
Common mistakes
- Sizing up after losses to win it back.
Related terms
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Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.