What’s your biggest challenge in mastering position sizing in trading?
Fortunately it is rather simple. Baby pips has a position size calculator where you can easily calculate lot sizes for your trades pretty quickly.
I think position size is actually very easy. First, you need to know how much you’re willing to lose (in Dollar or whatever currency you’re using) per trade. And then, just use the any position size calculator to get the lot size you need to trade depending on where you put your stop loss. You also need to evaluate how much % will this amount in related to your total capital. Personally, for day trading, I would go for 0.5% or less. For swing trading, 2% or less. This would be the general rule of thumb for me. In short, the more frequent you trade, the lesser position size you should use. The opposite is also true.
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One of the biggest challenges is simply sticking to the position size that you’ve chosen and not exceeding it.
Check out the lesson on Position Sizing if you haven’t.