Account Protection, Tailored for You
Never let a single trade wipe out your account. Calculate the exact number of shares to buy based on your predefined risk limits.
Risk Configuration
Never risk more than your predefined amount. Calculate exact share quantity in seconds.
50 shares
Position sizing model appliedNote: This calculator follows the 1% risk standard to protect trading accounts from catastrophic losses.
Why is Position Sizing Important?
Position sizing is simply deciding how many shares you should buy in a single trade. It is the most important part of trading. While most people focus on "what to buy," professional traders focus on "how much to buy."
The goal is simple: ensure that if a trade goes wrong, you only lose a small, controlled amount of your money. Most experts suggest never risking more than 1% to 2% of your total trading capital on any single trade.
How to calculate position size (with examples)
The formula for calculating position size is straightforward:
Real Example for Indian Markets
- Total Capital: ₹1,00,000
- Risk Per Trade (1%): ₹1,000
- Entry Price: ₹500
- Stop Loss Price: ₹480
- Risk Per Share: ₹20 (₹500 - ₹480)
Position Size = ₹1,00,000 * 1% / ₹20 = 50 Shares
By buying exactly 50 shares, if your stop loss hits, you lose exactly ₹1,000. Your remaining capital is safely preserved at ₹99,000.
Common Mistakes to Avoid
1. Buying the same number of shares every time
If you always buy "100 shares," your risk changes every time depending on how far away your Stop Loss is. Always calculate quantity based on your risk amount.
2. Going "All-In" with your full capital
Just because you have ₹1 Lakh doesn't mean you should use it all to buy one stock. Use margin wisely and keep your risk per trade small.
3. Forgetting about taxes and brokerage
Your total loss on a trade isn't just the price drop—it's also the costs you pay to the broker and the government. Always leave a small buffer for these costs.
Most traders fail not because of strategy,
but execution.
Don't calculate this manually every time. Automate your sizing, risk, and journal with Prepared Plan My Trade.
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