Why position sizing beats entry timing

Losing 50% of capital requires a 100% gain to recover. That asymmetry is the entire argument for controlling size before chasing accuracy.

If you risk 1% per trade, ten consecutive losses cost roughly 10% of capital. At 5% per trade, the same streak costs about 40%. The setups were identical; only the sizing changed.

This is why professional process starts from a fixed risk budget: decide the rupee amount you can lose on one idea, then let the stop distance determine quantity — never the other way round.

Illustrative example only. This is not a recommendation of any specific risk percentage for your situation.