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IBD Live Position Size Calculator
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Position Size CalculatorPosition Size Calculator
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Using Stop PriceUsing Stop Percent
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Dollar amount you want to risk on the trade:$1.000Dollar amount you want to risk on the trade:$1.000
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Entry price:100,00Entry price:100,00
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Stop price:90,00Stop percent risk:10,0%
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Dollar amount of position:$10.000Dollar amount of position:$10.000
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Number of shares: 100 Number of shares: 100
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Proper risk management is the foundation of any successful trading plan. IBD traditionally uses a maximum stop loss of 8% on any given trade.
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An alternative is to determine the portion of your overall account you want to risk on any given trade and then place a stop near a reasonable area, such as the 10-week moving average. A decisive weekly close below the 10-week line is one of the best sell signals for intermediate-term trading.
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Risk no more than 1% of your portfolio on a single trade and even less in volatile markets. Your position size as a percentage of your portfolio can range from 10% to 15% in healthy markets. Avoid excessive position sizes when your stop is close to the entry price by reducing the dollars risked.
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This means given a $100,000 account, your maximum loss for any single trade would be $1,000. In difficult times, you would want to risk much less.
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There are two versions of the calculator: The first requires you to input the dollars risked, current stock price and stop-loss price. The second requires dollars risked, current stock price and the stop-loss percentage as a positive value. Both determine the dollar size of the position and number of shares to purchase.
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