Does my position size actually match how much conviction I have in this trade?
Score This Trade's Conviction
Your Alignment Read
Check every factor that applies, enter your planned size, then click Calculate to see if your size matches your conviction.
How this is scored
Each checked factor adds one point out of 6. Your conviction score is that count converted to a 0-100 scale.
Low conviction (0 to 33) suggests a size band of 50 to 75% of your normal size. Medium conviction (34 to 66) suggests 75 to 125%. High conviction (67 to 100) suggests 125 to 200%.
These bands are a general guideline, not a formula tied to your specific account or risk tolerance. Use your own position sizing rules for the actual dollar amount.
Sizing above your conviction band is worth a second look. It's the pattern behind chasing a hot tip, revenge trading, or overconfidence after a winning streak: size that's disconnected from the actual quality of the setup.
Sizing well below your conviction band isn't necessarily a mistake. Plenty of disciplined traders size conservatively across the board and that's a reasonable choice, not a scoring failure.
Risk & liability disclaimer: This scorecard is a self-reflection tool based on factors you check and a size percentage you enter. It is not financial advice, does not evaluate the actual quality or accuracy of your trade thesis, and does not tell you what size to actually use. Trading involves risk of loss regardless of conviction level. Trading Habits is not a broker-dealer or registered investment adviser. Use your own risk management rules to determine actual position size.