Lesson · 8 min
Risk basics: position size, cash, and not blowing up
Use position sizing and constraints to avoid outsized losses and emotional trading.
Risk basics
A good trade is one where your downside is defined.
Rules of thumb
- Don’t risk more than 1–2% of your account on a single idea.
- Keep a maximum position size.
- Avoid revenge trading: take breaks after losses.
In TrueOunce
- Use Daily trade limit to prevent over-trading.
- Use Max position (oz) to cap exposure.
Next
Set your max position to something conservative (ex: 25 oz) in Settings.
Suggested action
If you place a trade, use a note template so each click teaches you something.
Quick check
Why use a max position size?
Answer all questions, then submit.