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Position Size Calculator

How many shares to buy for a fixed dollar risk.

Shares to buy
50
Risk per share $5, total risk $250
Position value
$7,500
Percent of account
30.0%

Shares are floored to whole numbers. The classic 1% rule keeps any single loss small enough that a streak does not wreck the account.

About

Pro traders size positions by risk, not by dollar amount. If you'll bail at $X stop loss and want to risk $Y on the trade, this tells you exactly how many shares to buy.

How to use

  1. Enter your account size and risk per trade (1-2% is typical).
  2. Enter the entry price and stop loss.
  3. See the share count and total position value.

FAQ

What's a sensible risk per trade?+

1-2% is the textbook range. At 2% you can lose 10 trades in a row and still have 80% of your account. Day traders sometimes go 0.5% to allow more setups.

Does it account for slippage?+

No. Slippage on stops is usually 0.5-1% in liquid stocks, more in small caps. Build it into your stop placement, not the position size.