Never risk more than 1% of your total account on a single trade. Account: ₹1,00,000. Max risk per trade: ₹1,000. This means even 10 losing trades in a row only costs you 10% of your capital, not your whole account.
Formula: Position size = (Account × Risk %) ÷ (Entry price − Stop-loss price). Example: ₹1,00,000 account, 1% risk = ₹1,000. Entry ₹100, stop-loss ₹95 (5% away). Position size = ₹1,000 ÷ ₹5 = 200 units.
It feels slow. Sizing down means smaller wins too, and that's psychologically hard when you're excited about a trade. But the traders who last 5+ years all do this — the ones who don't, blow up within a year.
A trader risking 1% per trade can survive a 20-trade losing streak with 80% of capital intact. A trader risking 10% per trade is wiped out after 10 losses. Survival is the entire game — sizing is how you survive.
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