The Importance of Position Sizing

You have to always think about your position sizing and your stop loss in relation to what you're risking of your total equity. The balance for most traders, particularly if you're just starting out, you don't want to be much more than 1% to 1.25%. So, again, that would just simply mean if you were to have a,. maybe you had a big position, a 25% position, right? If you were to take a 10% stop on a 25% positions, that means that you're risking 2.5%, which is too much.