Daniel Henry819 Anderson#9

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How does position sizing impact forex risk-adjusted performance?

Position sizing determines risk exposure per trade. Institutions scale positions systematically with volatility and capital. Retail traders often overexpose, risking 10–20% per trade, leading to ruin. Benefits: optimized sizing balances growth with survival. Risks: improper sizing magnifies drawdowns. Techniques include fixed fractional sizing, volatility-adjusted sizing, or Kelly Criterion. Position sizing is the lever of performance—applied wisely, it compounds capital; applied recklessly, it destroys it. For forex traders, mastering sizing is the difference between consistent growth and inevitable failure.