If you have a $10,000 account and want to risk 1%:
Your risk budget:
$100
Stock price: $50, Stop loss: $48
(risking $2 per share)
Shares to buy:
$100 รท $2 = 50 shares
Position size:
50 ร $50 = $2,500
๐ก This way, you never risk more than 1% even if the trade goes wrong!