Position Size Calculator

Calculate the optimal number of shares to buy based on your account size and risk tolerance. Never risk more than you can afford to lose on a single trade.

Your Parameters

Recommended Position Size

Max Risk Amount

$200.00

2% of account

Risk Per Share

Entry - Stop Loss

Position % of Account

Actual Max Loss

1

How to Use the Position Size Calculator

Position sizing is one of the most critical aspects of risk management in trading. This calculator helps you determine exactly how many shares to buy based on three key inputs:

  • Account Size — Your total trading account value
  • Risk Per Trade — The maximum percentage of your account you're willing to lose on a single trade (most professionals use 1-2%)
  • Stop Loss — The price at which you'll exit the trade if it moves against you
2

The 2% Rule

Many professional traders follow the "2% rule" — never risking more than 2% of your account on any single trade. This means on a $10,000 account, your maximum loss on any trade should be $200. This protects your capital during losing streaks and ensures longevity in the market.

Important: The 2% rule is a guideline, not a guarantee. During highly volatile markets, even a well-placed stop loss can slip. Always account for slippage and gaps in your risk calculations.
3

Why Position Sizing Matters

Even with a 60% win rate, improper position sizing can lead to account blowups. By calculating the right number of shares before entering any trade, you ensure that no single loss can significantly damage your portfolio.

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