Risk
The fixed percentage of an account risked on any single position — commonly 1% or less, and the same on every trade.
The benefit comes entirely from it being constant. Increasing it because a setup looks good, or to recover a loss, removes the protection it exists to provide.
Taught in
Why Risk Comes FirstRisk Before Anything ElseLosses do not scale the way people assume. Understanding that changes how much you are willing to put on a single idea.
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