I have a swing trading strategy that trades S&P 500 stocks. The largest position size I'm allowed to take based on my rules is 20% of capital. My thinking in regards to this is simple - I assume there is a chance that a stock could gap up or down by 50% and though extremely painful, I could weather a 10% hit to my account. What are your thoughts on my position sizing? Do you think I'm being overly conservative? Even if I allocate 20% of capital to a trade, the risk to my overall capital based on my stops is usually in the .01% to .05% of capital range.