Been trading for about a year and always struggled with position sizing.
Used to put way too much on single trades.
Took an online course last month that focused on risk management.
Now I’m only risking 2-3% per trade instead of 10%.
Still learning but my account isn’t swinging wildly anymore.
Much less stressful now.
Those early days were brutal when I’d throw 15% on one trade thinking I knew everything.
Blew through two accounts before finally getting it. One horrible week I lost 40% chasing a gold breakout that never came.
The 2% rule saved my trading career. My wins are smaller but I actually sleep at night now.
Dropped my risk to 3% too after a bad year. Feels way better.
Understanding risk management changes everything in trading. Big losses can really shake your confidence and lead to poor decisions.
Learning position sizing took time. The urge to chase quick profits can lead to losing more than expected.
Staying around 2-3% risk is wise. Always remember to only risk what you can afford to lose.
Fixing position sizing is crucial. Many traders lose accounts because they risk too much per trade, not from decisions on direction. The key now is to maintain that 2-3% rule even during winning streaks. Discipline is tested then. It’s easy to follow rules after losses, but harder when you feel confident. Consider keeping a trading journal if you don’t have one. Track your risk percentage for each trade. This way, you can notice if you’re slipping back into old habits before it becomes a bigger issue.
Risk management courses work. Data shows accounts survive longer with 2-3% position sizing versus higher percentages. Consistency beats home runs in options trading.