Listen, like any trader, I’m a risk taker — but some risks need reevaluating.
I love sushi. The flavor combinations and the way it just kind of pops and explodes with different umami aspects.
But there’s one thing I don’t love about sushi: the standard roll size.
I’m a petite lady, and every time I bite a pre-cut piece, it feels like it could take up my whole airway. At the start of that chewing process, I’m honestly a little nervous!
So when I’m out at restaurants, I just deal with it. But at home?
I break the sacred sushi rule every chef would faint over:
I cut each piece in half.
I grab a nice serrated tomato knife, hold the sushi with a grip like my life depends on it, and slice straight down the middle.
That way, I still get the full flavor — but I’m not risking my life.
Size Matters
This is just like position sizing in your trading. Position sizing is determining the quantity of a security to buy or sell in a trade to manage risk and potential reward.
When you trade your market of choice, there are really two main ways to go about position sizing.
You can set it as fixed — maybe you always trade two contracts, or 100 shares, or a flat dollar amount per trade.
Or, you can take a more formulaic approach, where your position size changes based on your account balance or the volatility of the setup you’re taking.
Both approaches can work — but the key is that you’re being intentional about it.
And unfortunately, a lot of traders don’t think about position sizing at all. They’re not really considering how each trade fits within their rules — their max risk per trade, or the total amount they’re willing to lose in a day.
When you ignore that, you’re basically shoving a whole sushi roll in your mouth at once. You might get away with it a few times, but eventually, you’ll choke.
Consistency Beats Complexity
Now, there are schools of thought that say even beginners can adjust position size based on changing market conditions.
And that can work — for some traders.
But for most, it’s far better to start with something steady. A consistent position size that you can execute day in and day out without having to overthink it.
The goal isn’t to be fancy — it’s to build rhythm.
Because when you change your position size too often, you also change your emotional risk. That inconsistency bleeds into your decision-making.
A Quick Refresher on the Math
Position size at its simplest is
Number of units (contracts, shares, etc.) × current price = total position value.
Caveat: the math gets more complicated when trading forex, but is still doable.
No matter what, your resulting position zie should always make sense in relation to your account size.
Risking 5% of your total account on a single trade is already on the high side. Safer territory is 1–2% per trade — enough to make progress, but not enough to blow up your account if a few trades go against you.
The Mindset Factor in Position Sizing Risk
Here’s where it gets personal.
Just because your account can handle a certain size doesn’t mean you can.
There are tendencies we all have — often below the surface — where the moment we put a trade on, we’re hoping for instant validation.
That little bit of green in your P&L can trigger relief, and before you know it, you’ve moved your stop up too early, just to protect a small win or avoid seeing red.
I see this a lot with traders who like to be early — they’re often right on direction, but they have to sit through choppy conditions first.
If your position size makes you tense the moment you enter, it may be too large at the outset.
Even if your account technically supports it, that discomfort will affect your decisions. You’ll get jumpy, take profits too fast, or bail out right before the move happens.
Less Really Is More
So even if you have a larger account, it’s okay to start smaller.
Your position size doesn’t have to meet anyone else’s “standard.”
This isn’t about impressing other traders — it’s about finding what lets you trade calmly and consistently.
Just like I slice my sushi in half to enjoy it without choking, you can right-size your trades to keep both your capital and your confidence intact.
~Hima
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