Position sizing: how many shares is the right number?
A simple method for turning an account size, a risk limit and a stop price into a share count, with a worked example.
Stocks
Equities are ownership stakes in companies. This section covers how shares trade, how to size a position, and how to read the market around them.
Live chart
What to learn
- Order types and execution
- Position sizing and stop placement
- Index funds versus single stocks
- Earnings and reporting seasons
Tools for stocks
Position size calculator
Turn an account size, risk percentage and stop into a share or unit count.
Risk/reward and break-even
See your reward multiple and the win rate you need to break even.
Drawdown recovery
How large a gain you need to get back to even after a loss.
Guides
Order types: market, limit, stop and stop-limit
What each common order type does, when it can surprise you, and how to choose between them.
Education only. All Markets Desk publishes education and general information, not investment, tax or legal advice. Trading involves risk of loss, including loss of everything you put in. Read the disclaimer and risk disclosure.