Risk management 101: position sizing for retail traders
It sounds dramatic, but it is true: the best analysis cannot save a position of the wrong size.
Rule #1 — Never risk more than 1% of your account
Maximum 1% of your account per trade. A ₾10,000 account → maximum ₾100 loss per trade. That means after 100 bad trades you are still in business.
Rule #2 — Calculate your position, don't "feel" it
Formula:
position size = (account × risk %) / (entry - stop)
Example: ₾10,000 account, 1% risk, EUR/USD entry 1.0800, stop 1.0750.
Risk per unit: 1.0800 - 1.0750 = 0.0050 = 50 pips. Allowed loss: ₾100. Position: 100 / 50 = 2 lots (informally).
Rule #3 — The market sets the stop, not "how much I'm willing to lose"
Bad: "I put my stop 20 pips away because that's ₾40." Good: "I put my stop below the last swing low. If price gets there, my idea is wrong."
If the right stop is too far — reduce the position. Don't move the stop closer.
Bottom line
It is not sexy. It is not what YouTube teaches you. But it is the difference between retail traders and the people still in the market five years later.
