All terms
All termsAddressBlockBlock timeBlockchainConfirmationGasGweiHashMempoolNodePrivate keyPublic keySeed phraseTransactionWalletAll time high (ATH)Bear marketBull marketCandlestickCapitulationChart patternsDollar cost averaging (DCA)Funding rateLeverageLimit orderLiquidationLiquidityMarket capMarket orderOrder bookPosition sizingRisk managementSlippageSpreadSupport and resistanceTrendVolatilityVolumeWhaleAMMBridgeCEXDAODeFiDepegDEXFlash loanGovernance tokenImpermanent lossLiquidity poolLP tokenOraclePerpetual (perp)RestakingRWAStablecoinTVLWrapped tokenYield farmingAirdropAlphaApe inBagholderDegenDiamond handsFloor priceFOMOFUDGMHODLMaxiMeme coinMoonNFTNGMINormiePaper handsPFPRektShillSnapshotWAGMIAddress poisoningCold storageCustodyDue diligence (DYOR)Dusting attackExit scamFront runningHardware walletHoneypotHot walletMEVMultisigPhishingPump and dumpRug pullSandwich attackSelf custodySIM swapToken approvalTwo factor authenticationWallet drainerWash tradingAccount abstractionAppchainBlock explorerCirculating and total supplyConsensusData availabilityEVMFaucetFinalityForkFully diluted valuation (FDV)Gas warHalvingLayer 1Layer 2Layer 3MainnetMiningName serviceOptimistic rollupProof of stakeProof of workRollupShardingSidechainSlashingSmart contractStakingTestnetToken standardTokenomicsValidatorZero knowledge proofZK rollupArweave and the permawebComposabilityCross chain messagingdAppDecentralized identity (DID)DePINGameFi and play to earnIndexerInteroperabilityIPFSOnchain and offchainSession keysSmart accountSocialFiSoulbound tokenSybil resistanceToken gatingWeb2 vs Web3Web3
Definition
Deciding how much to risk on a single trade, which matters more than entry.
Position sizing is the practical expression of risk management. A common approach is to risk a fixed small percentage of your account on any one idea, typically one or two percent.
Get this right and a run of losses is survivable. Get it wrong and one bad trade ends the account, no matter how good the analysis was.
In practice
With a 5000 dollar account risking 1 percent, you accept losing 50 dollars if you are wrong. That determines your size, given your stop.
Where to go next
Risk managementThe rules that keep one bad decision from ending your participation.LeverageBorrowing to increase position size, which multiplies both gains and losses.VolatilityHow much and how fast a price moves, in both directions.
More trading terms
All time high (ATH)Bear marketBull marketCandlestickCapitulationChart patternsDollar cost averaging (DCA)Funding rateLeverageLimit orderLiquidationLiquidity
Want this explained out loud?
Some of these land faster in conversation than in writing. Sessions are one to one and you can ask anything, including the things that feel too obvious to ask.