When to Reduce Size

Learn When to Reduce Size — part of our Live Trading Workflow series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

Protect capital during drawdown

Module 4 introduced drawdown maths. Practical triggers to halve position size or pause:

  • Three consecutive full stop losses (-1R each).
  • Daily loss hits your pre-set cap.
  • Sleep deprivation, anger, or urgency to “get it back.”
  • Major life stress unrelated to markets.
Turn down size — not up — after losses

Returning to demo for one week after a 10% drawdown is a valid professional choice, not failure.