Why Position Size Is More Important Than Entry
Many traders obsess over finding the “perfect entry.” But in reality, position size often determines whether you survive long enough to win.
You can enter slightly early or slightly late and still make money — if your position size is controlled. But even a perfect entry can turn into a disaster if you’re overexposed. Markets are unpredictable. Volatility, news, and liquidity hunts can push price against you before your thesis plays out.
Position sizing protects your capital. It limits emotional decisions, prevents forced liquidations, and allows you to stay in the game through drawdowns.
Professional traders think in terms of risk per trade, not just entry price. They calculate how much they’re willing to lose before they ever think about how much they might gain.
In the long run, survival > precision.
Because trading isn’t about being right once it’s about staying solvent long enough for your edge to compound.