How to position size for swing trades

Position sizing is the #1 thing separating consistent swing traders from gamblers. My rule: never risk more than 1% of account per position, where "risk" = (entry - stop) × shares. Example: - Account: $50,000 - Max risk per trade: $500 - Entry: $100, Stop: $95 (5% risk per share) - Position size: $500 / $5 = 100 shares ($10,000 position) This means in a worst-case scenario where you take a full stop-loss, you only lose 1% of the account. You can be wrong 10 times in a row and still have 90% of your capital. Most traders skip this math and "feel" their way into positions. Don't.