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Market Intelligence › Basic Terminologies
Practical test: If you don't need the night because of the position, then the size is too big for you — no matter what the spreadsheet says.
Published by The Retail Trader · JUL 31, 2026 · Trading Psychology
Position Size vs Need — Practical test: If position is not requiring night, then size is too big for you — no matter what the spreadsheet says.
This term comes under Trading Psychology, in the section "Relationship with Money". Most of the psychology comes from the condition of your money, not from your chart:
Other terms in this group — understanding them together is more useful:
• Risk Capital
• Scared Money
• Borrowed Capital
• Emergency Fund
• Income Expectation
• Opportunity Cost
• Comparison Trap
• Lifestyle Creep
To read the entire group and all its examples in one place, see the journal "TRADING PSYCHOLOGY: Words from the Mind" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.