Risk per trade

Decide the loss before you enter.

Most traders think about what a trade can make. The first question should be what it can lose. Set that number before anything else. At 1% risk per trade, ten losses in a row costs about 10%. At 5%, the same streak costs close to 40%. The number sounds small until a losing run tests it.

The sizing calculation, step by step.

Account $10,000. Risk 1% = $100. Entry $50, stop loss $48, so $2 per share. Shares = $100 / $2 = 50. Total position value $2,500. Planned max loss is set before entry; gaps and slippage can make the real loss larger.

This one is an animated diagram in the app. See it in Vero.

Your risk percentage is a choice you make once.

Many traders use 0.5% while learning a new setup and step up to 1% after results are consistent over at least 30 trades. Pick a number and hold it. Adjusting it trade by trade is not risk management. It is guessing.