How can you manage trading costs and maximize returns with position sizing?
Position sizing is one of the most important aspects of risk management and technical analysis. It refers to the amount of money you allocate to each trade, based on your risk tolerance, trading strategy, and market conditions. By using proper position sizing, you can manage your trading costs and maximize your returns, while avoiding overexposure and emotional stress. In this article, you will learn how to apply some basic principles and methods of position sizing, such as the fixed percentage, the fixed dollar, and the Kelly criterion.