Position sizing
Risk & Psychology
The only formula that matters
Shares = (account × risk%) ÷ (entry − stop). Risking $100 with a $0.50 stop = 200 shares. The stop's distance sets the size. Never the other way around.
Risk & Psychology
Shares = (account × risk%) ÷ (entry − stop). Risking $100 with a $0.50 stop = 200 shares. The stop's distance sets the size. Never the other way around.
$10k account, 1% risk, stop $2 below entry. Share count:
$100 risk ÷ $2 stop = 50 shares. Every professional sizes from the stop backward.
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