14 Position Size and Trade
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Position Sizing
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Option Trading:
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What is Position Size?
- Position Size Optimizes trading risk and profits
- Helps you know your risk and exposure
- Understand profit target
- Position sizing helps minimizing losses
What is money management?
- Money management is risk management
- Money management is a defensive concept.
- Money management optimizes capital usage
"Next to trading discipline, money management is the single most important factor in determining your success as a trader."
David P. Cash 2001 World Cup Trading Champion
"Money management cannot ensure that you always make spectacular returns, but it can help you limit your losses and maximize your gains through efficient diversification."
Justin Kuepper Investopia
Have position size questions? Check out our FAQ page.
