How Position Sizing Can Increase Your Profit In Trading
It is simple — Position Sizing = Risk Amount Per Trade / (Entry price — Stop Loss price).
In stock market, only ‘Entry’ and ‘Exit’ decide the trade’s fate, whether it is a day trade, BTST trade, or positional trade.
But Position Sizing decides the magnitude of that fate (profit or loss). Hence, position sizing is equally essential as compared to entry and exit of the trade.
Hence, it is better to prioritise position sizing when we plan to buy some shares in any security.