Risk and trade management
Position sizing
Choosing how many lots or units to trade so that hitting the stop costs a fixed percentage of the account.
Why it works
Position size, not the stop distance, decides how much you risk. Correct sizing keeps every loss small and comparable.
How to use it
Risk amount = account × risk %. Size = risk amount ÷ (stop distance × value per pip). Candlemind does this for you on every trade.
The typical mistake
Using the same lot size on every trade, so a wide stop risks five times more than a tight one.
FAQ
What is Position size in trading?
Choosing how many lots or units to trade so that hitting the stop costs a fixed percentage of the account.
How do you trade Position size?
Risk amount = account × risk %. Size = risk amount ÷ (stop distance × value per pip). Candlemind does this for you on every trade.