Forex Tip: Balancing Risk and Reward Through Proper Position Sizing One of the most underrated yet crucial strategies in forex trading is mastering position sizing. Many traders focus heavily on entry signals or technical indicators but overlook how much capital to risk per trade, which can make or break a trading account. Proper position sizing means adjusting your trade volume based on your account size, risk tolerance, and stop-loss distance. A common rule is to risk no more than 1–2% of your total capital on a single trade. This ensures that even a string of losses won’t wipe out your account, allowing you to stay in the game longer. This approach isn't just about limiting losses—it also enables more consistent growth. By managing risk, you create a stable foundation that amplifies the impact of winning strategies. As market conditions fluctuate, adaptable position sizing keeps you resilient without overexposing your capital. In essence, smart money management is just as important as technical skills in forex trading. #CommunityAMA