Leaderboard

See this post for a Hotkey that calculates # Shares based on max dollar risk:

See chapter 3 in 1st Andrew´s book or Chapter 7 in the new one (position sizing): Step 1: 1% of your account (max risk per trade) Step 2: Risk per share: (this depends on strategy) Step 3: Step 1 / Step 2 = Max number of shares you are allowed to tarde You can risk less per trade as you are a begginner...

A better example is taking 1,000 shares with a $25k account. Since your buying power is typically 4:1, you can take a position up to $100k using leverage. 1% of your account is $250. This means 0.25/share on 1,000 shares. The important part is to find a stop loss at a technical level, and figure out the per-share loss. This will determine the maximum share size you can take. Stop loss first, share size after. Using the same numbers above, a 0.50 stop loss would mean taking 500 shares. And so on and so forth. The 1% rule is a maximum. You can always risk less, but never more. When I traded 100 share lots, I pretended that my account was $2,500. All risk management and daily goal/loss calculations were based off $2,500 and not the full size.

Home Improvement: whiteboard installed on first attempt! Thanks @Carlos M. for the idea and inspiration!