New to this? Read the plain English guide first.
Work out how many shares keep your possible loss at a level you choose.
Position size is how much you buy in one stock. Picking it from the loss you can accept, not from a gut feeling, helps you stay in control. It does not remove risk and does not promise results.
Shares = (account size x risk percent) divided by (entry price – stop price).
Want the full story with a worked example? Read the Position Size guide, or see all of our free calculators. For learning only, not advice.