Position sizing should change with volatility.

Stock A: Moves 2% daily on average. Your stop loss is 4% away.

Stock B: Moves 8% daily on average. Your stop loss is 4% away.

Same stop loss percentage. But completely different risk.

Stock B is 4x more volatile. Your 4% stop loss will get hit more often just from normal movement.

Here's the fix:

Volatile stock = smaller position size
Stable stock = can take normal position size

Both risk the same rupee amount, but account for how much the stock actually moves.

Example:
- Stock A (low volatility): 200 shares
- Stock B (high volatility): 80 shares

Both risk ₹2,000 if stop loss hits.

But Stock B won't shake you out with normal volatility.

Most traders use the same position size for every stock.

Then wonder why volatile stocks always stop them out.

Adjust for volatility. It's not optional.