Position sizing determines the amount of capital allocated to a single trade and is crucial for managing risk in gold trading. Proper sizing prevents large losses during volatile periods and helps preserve capital over time. Traders often use fixed fractional methods or volatility-based sizing, adjusting their positions based on market conditions and account size. Incorporating position sizing into a gold trading strategy improves consistency and risk control. Educational materials at gold strategy provide detailed guidance on calculating and applying effective position sizes tailored to individual trading styles.
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