Fear is BACK… and that means we have to switch up our strategy and the stocks we’re targeting. So today at 1:30 PM ET on Stonkamania, I’ll go over my favorite sector right now, what we should rotate into, and why the market’s been selling off
Look, I’m going to share something with you that’s probably saved my account more times than I can count — and it’s dead simple.
But fair warning: This position-sizing rule isn’t for everyone. It’s how I run my book and keep the sizing just right because I’ve been doing this for years, and if I lose 10 trades in a row I’d probably just retire hah! So this may be fore more advanced traders fully confident in their ability to not blow up their account by losing 10 straight trades…
Most traders either play too big and blow up, or play too small and make no real money. They’re stuck between wanting to actually move the needle on their account while being terrified of losing everything.
I’ve cracked that code, and for me it comes down to one number: 10%.
The 10% Rule That Changes Everything
Here’s how I do it, and this is personal to me — you can adjust based on your own risk tolerance. But a full position, so one that my conviction is extremely high on, is about 10% of my total account value.
Let me make this concrete. If I’ve got a $2,000 account, my full position is going to be about $200. If I’m rolling with a $4,000 account, those numbers scale proportionally — same 10% rule applies.
Why does this work so well? Because even if I’m dead wrong 10 times in a row and every single trade goes to zero — which, let’s be honest, shouldn’t happen if you’re trading with any discipline — I haven’t completely blown up my account. I’ve taken serious damage, sure, but I’m still in the game with 90% left.
The beauty is this 10% threshold gives me enough size to actually make a difference in my account with a good ROI, while not risking too much on any single position. That’s the sweet spot right there.
How I Use Starter Positions Within the 10% Framework
Now here’s where it gets even better. Sometimes I know going into a trade that I’m probably going to add to the position, especially if it dips on me.
In those situations, I’ll start with as low as I can, maybe around $200 or so on that $4,000 account. Then I’ll add another $200 on the way down to create a full position of my $400.
This lets me average down without ever exceeding my maximum risk threshold. I’m still playing within that 10% boundary, but I’m being strategic about my entries. If the first entry goes against me, I’ve got room to add and lower my cost basis. If it works immediately, great — I’m in with a starter and can add on strength if I want, or sit tight.
The key is the math always works in my favor. I’m never overexposed. I’m never in a position where one bad trade can destroy everything I’ve built.
This isn’t some complicated algorithm or fancy risk-management theory. It’s just the way that I do it, and it’s kept me trading aggressively with options while maintaining the discipline to survive the inevitable losers over many, many years. And it’s helped me grow my account faster. But remember, the key here is to always be disciplined and follow your rules.
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from the team at Lance Ippolito Trading, New Money Crew or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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