Enter your account balance, the percentage you are willing to risk, your entry and your stop. The calculator tells you how many units, shares or coins to buy so a stop out costs exactly the amount you planned.
Why position size matters
Professional traders decide how much they can lose before they decide how much to buy. Risking a small, fixed share of the account on each trade, often 1 to 2 percent, means a string of losses will not wipe out the account.
Formula
- Risk amount = account balance × risk percent.
- Risk per unit = entry price minus stop price (absolute value).
- Position size = risk amount ÷ risk per unit.
Worked example
Your account is 10,000 dollars and you risk 1 percent, which is 100 dollars. You buy at 100 with a stop at 95, so you risk 5 dollars per share. Position size = 100 ÷ 5 = 20 shares.
Use your wave count to set the stop
The best stop is the invalidation level of your count. For a wave 3 entry, that is usually just beyond the start of wave 1. For forex, use the lot size calculator, which works in pips.
Frequently asked questions
How much should I risk per trade?
Many traders risk 1 to 2 percent of their account per trade. Beginners often choose 1 percent or less.
Does this work for crypto and stocks?
Yes. Enter prices in any currency and the result is in units, shares or coins.
Where should I put my stop loss?
At a level that proves your idea wrong, such as the invalidation level of your wave count.
Results are estimates for education and planning. Check contract specifications and costs with your broker before you trade. Disclaimer.
