POSITION SIZING
Core Focus: Teaches how to determine the exact amount of capital to allocate to a single trade or investment, balancing account size against acceptable risk thresholds.
Key Analytical Methods: Explores mathematical and risk-based allocation models, including fixed dollar amounts, percentage-of-capital rules, and volatility-adjusted sizing.
Capital Preservation: Demonstrates how disciplined position sizing acts as a primary defense mechanism to prevent catastrophic drawdowns and smooth portfolio returns over time.