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A Process Oriented Strategy on Position Sizing

One of the most frequently asked question in stock trading is 'how much money should I place in a trade?'. The quick answer to this is that there should always be a carefully planned decision making process before you can determine the proper amount necessary for a trade. Buying a stock just because you want to buy it or because it is 'cheap' will usually lead to BIG losses. This has been one of the main reasons why so many people who started trading in the market end up with chronic losses...