The 1–2% Rule
Professional traders never risk more than 1–2% of their total portfolio on a single trade. This means if the trade hits your stop loss, you only lose 1–2% — not enough to hurt you. This lets you survive 50+ losing trades in a row without blowing up your account.
Risk $200
Loss
vs. Profit $400
= 2:1 reward/risk ✅
Position Size Calculator
Recommended: 1–2% for beginners
Where you'll sell if the trade goes wrong
Results
Shares to Buy
Position Value
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Max Loss ($)
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% of Portfolio
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Potential Profit
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Reward/Risk Ratio
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