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Risk & Sizing

Do you use a larger position when you get a perfect entry?

22 Oct 2026 · Edited from Martin’s stream; not a verbatim quotation.

Probably not. A 0.1% stop is too extreme. If I've a 0.5% stop, I might still use around 25% size, depending on the stock and how fast it moves. For a normal fast-moving stock with an ADR above 4% or 5% and a stop below 1%, I'd use normal sizing, perhaps 20% to 25%, while risking only 0.15% or even 0.1% of the account. A tight stop can make a good trade, but there is always gap risk. If you size too big, a gap can really damage your account.

Source: EP107 | 22 Oct 2026