Risk
What is Position Sizing?
Deciding how much of your money to put in one stock
Full Explanation
Position sizing is the process of deciding what percentage of your portfolio to allocate to a single investment. Most pros never risk more than 2–5% of their portfolio on one trade.
Pro Tip
Concentrating too much in one name amplifies both gains and losses. Most risk management frameworks recommend limiting individual positions to manage downside — but the right size depends on your strategy and conviction level.
Related Risk Terms
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