This article has been translated from English to Gen Z Slang.
Now that we’ve taken that mega L from trading too much, let’s dive into how to vibe with leverage using proper “position sizing,” fam. 🙌
Position sizing is basically deciding how many units to YOLO on a currency pair. 💸
For real, it's one of the clutch-est skills in a forex trader's toolbox. 💼💡
Honestly, we’ll just say it’s THE most important skill. No cap. 🤷♂️
Foremost, traders gotta be “risk managers,” so before you start throwing stacks around, know how to do position size calculations like you know your fave TikTok dances! 💃🕺
Peep this—finding the position size that keeps you chill with your risk is a cakewalk... well, kinda. 🍰😅Depending on the currency pair you’re eyeing and your account denomination (dollars, euros, pounds, etc.), you might need to flex a couple of extra steps in the math. 🧮✨
Before we hit the math train, we’ll need to collect these five things: 🚂📊
- Account balance or stack size 💰
- The currency pair you’re gonna trade 💱
- The lit percent of your account you’re down to risk 🙈
- Stop loss in pips 📉
- Conversion currency pair exchange rates 🌐
Easy peasy, right? Let’s bounce to some examples. 🚀✨