Here’s how I look at swing trading: you’re trying to build a composite of momentum leaders at the right times. With that in mind, it makes no sense to oversize any single name. You want a basket of the fastest-moving stocks that meet your account’s liquidity constraints. Think about a 100% position in one 7% ADR name versus 20 equally weighted positions averaging 7% ADR. Same total allocation and weighted average ADR, but the single-name position carries far more company-specific risk. And during the environments that actually pay swing traders, there’s absolutely no need to concentrate in one name. A whole basket of momentum leaders emerges and rips higher. Once you truly embrace this, the need to oversize disappears. There’s the position sizing math and the risk of something specific to one company going wrong: key person risk, bad news, some fluke outlier event. But there’s also the mental side. Say you put 50% of your account, or your entire account, into one stock. It sits there while everything else on your watchlist goes up. What do you do? Sell it, chase something else higher, then get chopped out on the pullback? It becomes a vicious cycle. Instead, you could start with 10% positions and build a portfolio of high-momentum, high-ADR stocks with enough liquidity to support your sizing. You get exposure to the group without needing one particular name to lead every day. No one ever talks about this, but it’s foundational to my approach. Think about the movement potential and liquidity of the portfolio as a whole. You’re essentially building your own ETF. The goal is to capture as much movement as your account’s liquidity constraints reasonably allow, without depending on a single stock. If you need to zoom in for a precision entry, fine. I get that. But once you’re in, zoom back out. Focus on the key higher-timeframe levels if you must, but really, set your stop at invalidation and let your stop, trailing rules, and take-profit triggers do their jobs. You don’t need to babysit every candle. This is also my key indicator of whether the market is conducive to swing trading: can I build a portfolio of leaders, keep adding names, and increase my allocation as existing positions work? Or, for every name I add, am I getting stopped out of another? If nothing sticks, that tells me something. In a healthy market, before you know it, you’ll have 10 positions on. As you manage your exposure and make room for more names, that can eventually become 20. For me, getting to that point is usually a signal that things may be due to cool down a bit. Run your scanner properly, filtering for stocks liquid enough to support your position size / speed, and you’ll build a portfolio of fast-moving, liquid names. A composite of momentum leaders. Long story short, oversizing as a swing trader is a complete waste of time. Lots more to add on this. Maybe I’ll do a chart talk on it soon?