Position sizing is one of the most crucial yet underrated aspects of Forex trading. It determines how much of your account you risk on each trade and directly impacts your profitability and emotional stability. A general rule of thumb is to risk no more than 1-2% of your account on a single trade. This ensures that even a string of losses won’t significantly impact your overall capital. Use position sizing calculators to adjust your lot size based on your risk tolerance, stop-loss distance, and account size. Proper position sizing also helps you stay emotionally detached, as you’re less likely to panic when the stakes are manageable. Remember, it’s not about how big your trades are; it’s about how consistently you manage risk. Master position sizing, and you’ll build a solid foundation for long-term success.