Position Size Calculator
Calculate how many shares to buy based on your risk tolerance. Essential tool for proper portfolio management and risk control.
Position Size Calculator
Recommended: 1-3% for conservative, 3-5% for aggressive
Price at which you'll sell to limit losses
Position Sizing Results
Maximum Shares to Buy
Total Investment
$20,000
Dollar Amount at Risk
$1,000
Risk per Share
Portfolio Allocation
40%
Risk level is appropriate
Position Size Calculator
Determine how many shares to buy based on your risk tolerance and portfolio size. This is crucial for risk management!
What is Position Sizing?
Position sizing means deciding how much money to put into each investment. It’s one of the most important - but often overlooked - parts of investing.
How to Use This Calculator
- Portfolio Value: Total value of your investment account
- Risk Percentage: How much of your portfolio you’re willing to risk (typically 1-5%)
- Stock Price: Current price per share
- Stop Loss: Price where you’ll sell if it goes against you
The calculator tells you:
- Maximum shares to buy
- Total investment amount
- Dollar amount at risk
Position Sizing Rules
Conservative Investor: 1-2% risk per position Moderate Investor: 2-3% risk per position Aggressive Investor: 3-5% risk per position
Never risk more than 5% on a single position!
Example
- Portfolio: $10,000
- Risk tolerance: 2% = $200
- Stock price: $50
- Stop loss: $45 (you’ll sell if it drops here)
- Risk per share: $5
Maximum shares: $200 ÷ $5 = 40 shares
This way, even if you’re wrong and hit your stop loss, you only lose $200 (2% of portfolio).
Category
Risk Management