🐺Why Position Sizing is the Key to Success in 2025?

Hey there! My name is Jordan and I write about trading for the WOLF Financial newsletter. If you are looking for more trading tips and tricks, I guarantee you’ll enjoy my content on 𝕏, @AcetheKidTA. 

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Welcome back to another Sunday, I hope everybody is enjoying the weekend! This week I wanted to talk about position sizing and how important it has been over the past 2 weeks with the way VIX has been trading.

Volatility enters and exits the market all of the time. Recently you saw a volatility spike and the market moved much faster rather than when we are trading at all-time highs and the VIX is trading from $12-$13.

Volatility Will Make or Break Your Trading

You can see VIX spiked to $28 over the past couple of weeks. I’m sure during this time you noticed way more volatility in your positions.

For example, if you normally trade 10 $MNQ contracts, I’m sure you were forced to size down over the past 2 weeks because of the volatility in the candlesticks. 1 of these days we were casually trading back and forth within a 250pt range on $MNQ.

This just goes to show how important sizing can be and to pay attention to the VIX because you might be sizing more than you’d want to in a volatile range.

For example, If my full position is 10 $MNQ contracts, I would’ve been trading half that with the volatility recently. Similarly, when I know I’m taking a trade that I am forced to take more risk I will size down accordingly so I can take the same dollar amount of risk.

Make sure you’re keeping an eye on the VIX and how much volatility is in the market, it can make or break your trading.

Knowing what to look for and then acting on the information you have are two big steps toward becoming a consistent and successful trader.

Thanks for reading and have a great week!

-Jordan

@AcetheKidTA