Van Tharp on Position Sizing

I suppose it is not very fashionable to discuss risk management strategies, like position sizing, in the midst of this legendary bull run. So, consider this an educational post more than anything else for you to ponder over the weekend. 

Nonetheless, I can assure you down the road the market tide will turn. And when it does (if it is not already the case), most traders will wish they had respected sizing discipline. 

Without question, there are some thought-provoking points in the video presented below. 

Have a great weekend! 

via YouTube:

Size really does matter in the markets! Position Sizing (a term coined by trading coach Van Tharp), tells you how much to risk on any particular trade. It is one of the most important concepts that any trader should know. Van Tharp has also written The Definitive to Position Sizing Strategies, a desk reference for serious traders.