The Definitive Guide To Position Sizing Free [updated] Here

Because the leverage is high (78%), you decide to cut risk to 0.5% ($125). $125 / $25 = 5 mini-contracts.

Where:

The Average True Range (ATR) measures how much a stock moves on average per day. A $10 stock with an ATR of $2 is very volatile. The Definitive Guide To Position Sizing Free

Most beginners ask: "What stock should I buy?" Because the leverage is high (78%), you decide

: Position sizing is designed to preserve capital and prevent "risk of ruin"—a loss so large you can never recover. System Quality : Tharp introduces the System Quality Number (SQN) Because the leverage is high (78%)