Position Sizing vs. Stop Loss: A Battle
Source: Pixaby
Trading success depends on two important elements: position sizing and stop losses. These fundamental components work together like a financial tug-of-war, each pulling in its own direction to protect a trader’s capital.
Position sizing determines how much to risk, while stop losses dictate when to exit. Understanding how these elements interact can mean the difference between consistent profits and losses, making it essential to master how they work together.
This post originally appeared at NetPicks.
Category: Options Trading Basics
