Books have been written on the topic so let’s keep this simple. If you are learning how to trade, you should be trading 1 share of stock until you get your win rate above 75% for a few months straight. When you get there you will have plenty of experience and you can gradually increase your size. If you are a seasoned trader with good success, use the SPY signals as your guide. When all of the trade signals for SPY across all time frames agree, you have optimal conditions and you should trade full size. Market conditions drive all of our trading decisions. When you have anything less, you should trade smaller size and there will be times when you should not trade.
How should I size my trades?
April 6, 2022