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Many people have a misconception about position sizing, thinking it’s just about controlling the amount of capital used—actually, that’s only a superficial understanding. The core function of position management is to help you control your trading emotions.
Imagine going all-in and hitting a limit-down. At that moment, any market fluctuation can anger you, making rational responses nearly impossible. Once emotions spiral out of control, the situation completely spirals — often leading to a series of mistakes, sinking deeper and deeper.
Conversely, if only a 10% position hits a limit-down, the
View OriginalImagine going all-in and hitting a limit-down. At that moment, any market fluctuation can anger you, making rational responses nearly impossible. Once emotions spiral out of control, the situation completely spirals — often leading to a series of mistakes, sinking deeper and deeper.
Conversely, if only a 10% position hits a limit-down, the