Position Sizing: The Psychology Behind Your Trade Size

That trader throwing 25% of their account at a single trade? It's not boldness. It's panic dressed up as conviction.

Here's what gets left out of most trading education: tiny position sizes—we're talking 1-2% per trade—aren't weakness. They're the opposite.

When you can afford to risk small, it means you've built a cushion. You're not desperate for the next win. Your account doesn't need to swing 25% to feel "alive."

Abundance thinking works like this: more trades ahead, more opportunities coming, so why blow the whole arsenal on one shot? You can lose five consecutive trades at 1-2% risk and still be standing. That's freedom.

The person risking 25%? They're operating from scarcity. Maybe one more big win fixes everything. Maybe this trade is the one. That's fear talking, not strategy.

Position sizing is where psychology meets mathematics. The numbers tell the story about your mindset.