Position size determines how much you win or lose on each trade. The speaker explains how leverage and volatility affect your results, and why controlling position size is the second pillar of smart trading after having an edge.
You start putting all those things together, and they you see how they impact your trade, and then you can delineate what an environment is. Right. So, and then the second pillar is position size, which, actually, I just kind of alluded to that. So position size is, you know, if you've got the most profitable strategy in the world and you put leverage 500% of it and it draws down 20%, you're out. Right. You know, so you got to pay attention to what you're you know, I feel like we have to pay attention to what our position sizes is. Right. And so if you're pairing multiple trades against each other, so say maybe you've got five different swing trades on. And I was saying something like volatility impacts your trade. And let's say inverse correlations.
