Over the years of trading, I've increasingly come to feel that what ultimately determines how much a person can earn is not technique, but position sizing.

Many newcomers especially like to study entry points. Has the MACD golden cross occurred? Has the resistance level been broken? Has capital flow come in?

But what truly zeroes out an account is often not buying wrong, but position sizing wrong. The same trade: if you go light and lose 10%, it's just a few days of less profit. If you go heavy and lose 10%, your mindset starts to warp immediately.

After a loss, unwilling to admit defeat, you add more positions to average down;
After adding, it continues to fall, so you add again;
In the end, an ordinary mistake is turned into a fatal one.

There's a cruel fact in the market: no one can guarantee they are right every time. Even a trading system with a 70% win rate will have consecutive losses. So professionals never consider: "How much can I make on this trade?" Instead: "If this trade is wrong, how much will I lose?"

The essence of position management is actually to leave yourself a way out.

Because only by staying alive are you qualified to wait for the next opportunity.

I've seen too many people make half a year's profit in one market move, only to give it all back in a single heavy drawdown.

I've also seen many people whose annual returns are not spectacular, but because they control drawdowns well, their accounts keep growing.

Later, I set a rule for myself:

For markets I understand, I can trade.
For markets I don't understand, I stay in cash.
Even for markets I understand particularly well, I don't go full position.

Because the market loves to teach those who are overconfident.

In the end, trading isn't about who catches more opportunities.

It's about who pays a smaller price when they make mistakes.

Remember one sentence:

Technique determines how fast you can make money; position sizing determines how far you can go.

And those who can survive multiple cycles in this market almost all share one common trait—they always put risk before profit.
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