Position Sizing Formula — How Much to Risk Per Trade
The exact formula and worked example for calculating the perfect position size on every trade — no guesswork, no over-leveraging.
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About This Infographic
Position sizing is the single most important skill that separates amateur traders from professionals — yet most beginners skip it entirely. This infographic presents the complete Position Sizing Formula (Position Size = Account Size × Risk % ÷ Risk Per Share) with a fully worked real-money example: starting with a ₹1,00,000 account, risking 2% (₹2,000), entering at ₹500 with a stop at ₹490 (₹10 risk per share) yields exactly 200 shares — a precise, mathematically sound position. The bottom section provides a Risk Per Trade Rules table comparing Conservative (1%), Moderate (2%), and Aggressive (3–5%) risk profiles with color-coded meters. A gold 'NEVER RISK MORE THAN 2% PER TRADE' callout box drives home the cardinal rule of capital preservation.
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