Calculate how much to buy to keep your risk constant.
Position sizing refers to the number of units (shares, lots, coins) you invest in a specific trade. It is the most critical component of risk management.
Professional traders suggest never risking more than 1% to 2% of your total trading capital on a single trade. This ensures that even a string of losses won't wipe out your account.
The formula used in this tool is:
Example: If you have ₹1,00,000 capital and want to risk 1% (₹1,000), and your Stop Loss is ₹10 away from entry, you should buy 100 shares (1000 / 10).
Tool developed by Rahul Kumar (WPFixHub) to help Indian traders survive and thrive in the stock market.