Regarding position sizing, losses, and take profit and stop loss, here are some honest words

Many people lose money, not because they see the wrong direction, but because their position size is too large.

1. How to increase your position?

Always keep a fixed percentage of your total funds for each trade.

Why? Because you never know when the market will suddenly turn against you.

· Light positions, can afford losses, can withstand setbacks, maintain a stable mindset
· Heavy positions, a normal correction can wipe you out

How much to increase depends on your win rate and risk-reward ratio. If your win rate isn’t high, you should keep your position size smaller.

Don’t complain about earning little. The power of compound interest is much greater than you think.

2. How to adjust during losses?

Remember two iron rules:

First, after losing several consecutive trades, stop immediately and close the software.

It’s not that your skills suddenly declined, but that your mindset is already off. Opening new trades at this point is almost certainly throwing money away. Wait until the next day to calm down and review the charts.

Second, if a single loss exceeds a fixed percentage of your total funds, you must stop.

This is your own circuit breaker. It indicates that this trade was already wrong; holding on will only lead to more losses. Cut your losses and walk away, then come back tomorrow.

3. How to combine stop loss and take profit?

Maintain a reasonable risk-reward ratio. For example, set a small stop loss and aim for at least twice the take profit. If you can’t do that, don’t open the trade.

How to set stop loss?

· Based on market volatility
· Or place it outside key support/resistance levels
· Don’t put it where everyone can see — that’s giving money to the big players

How to set take profit?

· Scale out: sell half at the first target; sell another half at the second target
· For the remaining position, set a trailing stop to let profits run

Don’t always try to sell at the highest point. Just catching the move is enough.

---

Finally, four sentences to memorize:

Light positions without stop loss mean no risk control.
Losses without reducing position size, and increasing positions, will only lead to regret.
Making money but not withdrawing funds, will eventually give it back.
Remember these, and your account will thank you.