Stock Position Size Calculator: Trade Smart with Risk Control

One of the biggest mistakes new traders make is trading without a clear position sizing plan. Whether you’re a swing trader or long-term investor, using a stock position size calculator can help you optimize your trades while minimizing risk.

What Is a Stock Position Size Calculator?

A stock position size calculator helps you determine how many shares to buy or sell based on:

• Your account size
• The amount of risk you’re willing to take per trade
• The distance between your entry and stop-loss

It ensures you’re not overexposed or under-invested on any trade.

Why Position Sizing Matters

• ✅ Controls losses on bad trades
• ✅ Maintains consistent risk across all positions
• ✅ Helps you avoid emotional trading
• ✅ Prevents blowing up your account
• ✅ Works with both small and large capital sizes

How to Calculate Position Size (Formula)

Here’s the basic formula:

javaCopyEditPosition Size = (Account Risk %) x (Account Capital) / (Stop-Loss $)

Example:

• Account size = $10,000
• Risk per trade = 2% = $200
• Entry = $50
• Stop-loss = $48
• Risk per share = $2

Position Size = $200 / $2 = 100 shares

You would buy 100 shares of that stock.

Best Online Stock Position Size Calculators

1. Myfxbook Position Size Calculator

• Web-based
• Customizable for stocks, forex, and crypto

2. Tradersync

• Includes journaling + position sizing
• Good for performance tracking

3. TradingView (manual method)

• Use built-in risk/reward tool to visualize size

4. Trade Brains India

• Free position sizing tool tailored to Indian stocks

5. Edgewonk + Excel Sheets

• For advanced traders who want full control

Tips for Smarter Position Sizing

• Stick to 1%–2% max risk per trade
• Adjust size based on volatility of the stock
• Reduce size during uncertain markets
• Combine with stop-loss discipline
• Recalculate size if you change your stop-loss or capital

FAQs

Q1. Can beginners use a stock position size calculator?
Yes, it’s highly recommended. It teaches proper risk management from day one.

Q2. Is this the same as portfolio allocation?
No. Position sizing is per trade. Allocation involves overall portfolio structure.

Q3. What’s the best risk per trade?
Most pros use 1–2% of capital per trade. Never exceed 5%.

Q4. Should I adjust size for volatile stocks?
Yes. Use a wider stop and smaller size for high-volatility tickers.

Q5. Are there apps for mobile position sizing?
Yes. Apps like MetaTrader, Trading Journal, and custom spreadsheets work well.