Risk First, Profit Second: Position Sizing Methods That Actually Survive Drawdowns
The harsh reality of forex trading reveals itself not in the moments of victory, but in the inevitable periods of drawdown when equity curves bend downward and psychological pressure mounts. Most traders approach position sizing as an afterthought, focusing instead on entry signals and technical patterns. This inverted priority structure explains why the majority of retail forex accounts deplete within their first year of trading. Position sizing represents the single most critical determinant of long-term survival in forex markets. It functions as the mathematical governor that prevents catastrophic losses while allowing sufficient exposure to capture meaningful returns. The difference between…
