The Position Size Calculator is the most essential risk management tool for traders. By entering your account size, risk percentage, entry price, and stop loss, the calculator determines the optimal number of shares/contracts/units to trade, ensuring that your maximum loss on any single trade never exceeds your predefined risk limit.
Conservative traders typically risk 1% per trade, aggressive traders 2-3%. Beginners should never risk more than 1% of their account on a single trade.