EC2 has many instance type but choosing the most powerful instance type isn’t the best choice because the cloud is elastic.
Right Sizing is the process of matching instance type and size to your workload peformance & capacity requirement at the lowest possible cost.
Scaling Up is easy so always start small.
Its also the process of looking at deployed instances and identifying oppurtunities to eliminate/downsize without compromizing capacity or other requirement which results in lower costs.
Its important to right size before cloud migration & Continiously after cloud onboarding process (requirements for sizing change over time & other factors)
Use cloudwatch, Cost Explorer, Trusted Advisor, 3rd party tools can help.