Three rules for position sizing: 1. Bet high enough to make meaningful profits when you win. 2. Bet low enough so you are ok financially and psychologically when you lose. 3. If (1) and (2) don’t overlap, don’t trade. |
Three rules for position sizing: 1. Bet high enough to make meaningful profits when you win. 2. Bet low enough so you are ok financially and psychologically when you lose. 3. If (1) and (2) don’t overlap, don’t trade. |