Most people risk too much because they ignore volatility.
My account is $1000. I risk 1% = $10.
THETAโs 1h ATR is 1.4% of 0.19220 = 0.00269.
My stop would be 0.00269 below entry.
To risk $10, I divide: $10 รท 0.00269 = 3717 shares.
At 0.19220, thatโs 3717 ร 0.19220 = 714.30 position size.
On the next trade, I size so my stop distance equals 1% of my account, not my gut.
Whatโs your rule for position sizing?
#TradingTips #THETA
Not financial advice. My levels, my risk.