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**Source:** https://youtu.be/TrTJR-6z6xY
**Type:** #litnote #todevelop 

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Focus on how much money you could potentially lose not how much money you could make. 

You should be able to sleep a good nights sleep  with your position sizing .

***Protecting your capital is your primary job***

# Types of Position Sizing
- Fixed percentage per trade(1-5%)
- Fixed-dollar amount per trade
- Volatillity based position sizing
	- More dynamic
	- 



# Risk Parameters
- You should be able to survive taking losses on 10 consecutive trades
- Those 10 consecutive trades should not exceed a total of 25 percent drawdown
- No more than 2% risk per trade

# Stop loss rules
- Never adjust the stop to arrive at a desired position size. Adjust the size of the position to meet your risk level(stop loss)
- Trading using the same risk parameters on all trades


***If you risk too little, you will not grow. If you risk too much, you might destroy your account.***