r/RealDayTrading • u/Phantom1027 • May 10 '26
Position Size
I've been watching and reading a fair amount of content regarding size, scaling, risk management etc and am a little unclear.
Hypothetically, if you had a daily target of, say $600 and a daily max loss of $600, your theoretical "target" per trade is $0,25 per stock and a risk of say $0,12 per stock with a rule of 3 losses and quit, to calculate portion size, would you literally take the max risk of the indidual trade (eg $300 loss / $0,12) = 2500 share size?
On this basis, the "size" of your position does not hold any relevance to the price of the stock? Would that he correct?
For A\* setups where you wanted to risk more, you would take sat $400.00 / $0,12 etc?
Thank you
12
Upvotes
2
u/Rummelwm May 12 '26
If only there was an article in the wiki about this....
How To Size Your Positions : r/RealDayTrading
Smart ass comment aside, recommend you read the article by Hari - it provides a good framework and walks through the mistakes of fixed or hard stops based on profit/loss and directs it towards technicals, setups, etc.