Position Sizing Calculator: The Only Tool You Need to Manage Risk

Most traders spend hours on entry signals but five seconds on position sizing.

This is backwards.

Position sizing is the single most important factor in long-term trading profitability. Here is why:

The math:

• Risk 2% per trade = survive 50 consecutive losses
• Risk 5% per trade = survive 20 consecutive losses
• Risk 10% per trade = survive 10 consecutive losses

The difference between 50 and 10 is the difference between a career and a blown account.

The formula:
Position Size = (Account Balance * Risk %) / (Entry Price - Stop Loss Price)

Example: $10,000 account, 2% risk ($200), entry at $50, stop at $48
= 200 / 2 = 100 shares

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Use our free Position Size Calculator to calculate your position sizes instantly.