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Now in context:

Initially from tech/a

Stock Halt

Happens often when trading Smalls

But Has never been an issue relative to

capital at risk and net worth.

Fair enough, in this case the answer [would seem to be] diversification, leading to small position sizes. 

You seem to have started your analysis with the word 'diversification' and worked backwards. This has led to your assumption that the word diversification pertains to a diversification of stocks held, in a single strategy.

Clearly this need not be the case. The word diversification could equally be applied to a diversification of strategies, which has already been raised on this thread as an option.

Further, it ought to be clear that by including the words [would seem to be] in the sentence, that the sentence becomes conditional on confirmation by the original protagonist. My sentence is therefore in the form of a question. It cannot therefore be an assumption.

If my net worth is $10mil, and I trade with $500k and bet $25k per trade on a small cap is that a small position size?

Well that is 5% of your trading capital as a position size and your trading capital is 5% of your net worth. That to me, would seem to be prudent, or a small position size.

Putting $25K into a small cap might or might not be a small position size. All depends doesn't it.

jog on

duc