Lets take a closer look at position sizing and why it is critical for your financial health.   How much should one allocate to any given trade?   The 2% – 6% rules have been introduced in Dr. Alexander Elder's book "Come Into My Trading Room".   The 2% rule is to protect traders from any single terrible loss that can damage their accounts. With this rule traders risk only 2% of their capital on any single trades. This is for limiting loss to a small fraction of acco