The Disciplined Traders Podcast - Master the Market. Build Wealth. Stay Disciplined

Position Sizing for Swing Traders


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In this episode, we dive into one of the most important — and most ignored — parts of swing trading: position sizing. If you want to stay in the game long enough to actually win, you need to control your downside. That’s exactly what this episode is about.

  • Why position sizing matters more than your stock picks.

  • The 1–2% rule and how it protects your account.

  • The difference between capital invested vs. risk taken.

  • The exact formula you can use to size every trade.

  • Common mistakes new traders make with position sizing. Example:

  • Account size = $10,000

  • Risk = 1% = $100

  • Entry = $50

  • Stop = $48

    • Risk per share = $2
    • Position Size = $100 ÷ $2 = 50 shares

  • The Position Sizing Formula: Position Size = (Account Size × Risk %) ÷ (Entry Price – Stop Price)

    Every great swing trader has a process. The DTA A+ Swing Trading Checklist is the same one our community uses to keep trades disciplined, repeatable, and consistent.

    Grab your checklist and make it part of your routine.

    https://bit.ly/3Z0gWe9


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    The Disciplined Traders Podcast - Master the Market. Build Wealth. Stay DisciplinedBy Brian Montes

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