Position Sizing – Part 1 | Understanding the Foundations | The Long & The Short Ep.19

Описание: Welcome to The Long & The Short – a show where you can expect an honest take on trading, something you won’t hear elsewhere.

I’m your host, Sandeep Rao (SEBI Registered Research Analyst – INH000013059).

In this episode, we begin a brand-new series on what many professionals consider the single most important pillar of trading: Position Sizing.

You can survive with an imperfect strategy.
You cannot survive with a broken position sizing framework.

Most traders obsess over entries, indicators, and setups. Very few spend enough time on how much capital to deploy, how much risk to take, and how to stay alive during drawdowns. In reality, performance does not end at backtests. That is where the real work begins.

📌 Chapters:
00:00 Intro: Why Position Sizing Matters
01:06 What Is Position Sizing?
03:20 Risk of Ruin Explained
04:53 Lot Size & Notional Value Explained
06:24 Margin: SPAN, Exposure & How It Works
08:48 Leverage in Futures & Its Impact
11:16 Futures vs Options: Key Differences
14:14 Cash Rules, Pledging & Capital Efficiency
17:53 NIFTY Backtest Question
18:29 Conclusion & What’s Next (Part 2)

🔗 Resources & Links:
1. Episode 07 – Financial Products in India: A Trader’s Toolkit | The Long & The Short Ep. 7
   • Financial Products in India: A Trader’s To...  
2. Episode 11 – Trend Following in India — Part 3: Nifty + Gold Strategy | The Long & The Short Ep. 11
   • Trend Following in India — Part 3: Nifty +...  

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Disclaimer:

Investments in securities are subject to market risks. Please read all related documents carefully before investing. SEBI registration does not guarantee the performance of the intermediary or assure returns to investors. The securities mentioned are for illustrative purposes only and do not constitute a recommendation. By proceeding, you acknowledge and agree that any returns shown on this platform are solely for informational purposes. They are not intended to serve as advertisements or promotional material, nor should they influence your investment decisions.

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