Calculate optimal position size based on risk management principles
Total account value
Recommended: 1-2%
Exit if trade goes against you
Profit target
$0 for most brokers
Please enter valid values to calculate position size
Never risk more than 1-2% of your portfolio on a single trade. Position sizing determines how many shares to buy based on your risk tolerance and stop loss level. The formula: Position Size = (Portfolio × Risk %) ÷ (Entry Price - Stop Loss). A good risk/reward ratio is at least 2:1 (reward twice the risk). Always use stop losses to limit downside. Diversify by limiting any single position to 5-10% of your portfolio. Professional traders often risk only 0.5-1% per trade to survive inevitable losing streaks.