InsiderFlow › Tools › Position size calculator
The right question isn't "how much can I make" but "how much am I willing to lose". Enter capital, risk percentage per trade, entry price and stop loss: get the correct position size.
Indicative calculation for educational purposes: not a forecast nor financial advice.
The professional traders' classic rule: never risk more than 1–2% of capital on a single trade. Position size follows from there: capital × risk% ÷ distance to stop loss.
This approach reverses common logic: first decide how much you're willing to lose, then how much to buy. It's the difference between managing risk and suffering it.
Because losing streaks happen to everyone: at 2% risk, ten consecutive losses cost 18% of capital; at 10%, they cost 65%.
It's designed for trading with stop losses; for long-term investing, risk management comes from diversification and asset allocation.