The Position Sizing Framework: How I Decide 1-3% Risk on Every Trade
⚠️ Educational content only — not financial advice. Trading futures, options, and other leveraged products involves substantial risk of loss and is not suitable for every investor. All examples shown are historical or hypothetical and do not guarantee future results. You may lose more than your initial deposit. Please consult a licensed financial advisor before making any trading decision. See full Disclaimer . 🛡️ RISK MANAGEMENT SERIES The Position Sizing Framework: How I Decide 1-3% Risk on Every Trade Most losing trades are not from bad setups. They are from good setups sized wrong. Three questions I answer before every trade, worked through a real MNQ example — plus the four regimes where the framework quietly fails. The most expensive lesson from a decade of trading — documented in Five Painful Lessons — was not that I picked wrong trades. It was that I sized right trades wrong. Specifically, I sized on how much I liked the setup rather than on what the trade ...