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Enter your account, your risk, and your stop. We'll tell you exactly how many shares to take so one trade can never hurt you.
The slice of your account you're willing to lose if the stop gets hit. The 2% rule keeps any single trade from doing real damage.e.g. 2% of $10,000 = $200 max loss.
The price where you exit because the idea is wrong. Your share size is built from the distance between entry and stop.
Shares × entry price — the capital the trade ties up. It can be a big % of your account even when your risk is small, because risk is controlled by the stop.
Distance to target ÷ distance to stop. At 1:2 you make $2 for every $1 risked, so you can be right less than half the time and still grow.
Position sizing is Lesson 7 of the free lessons — the full risk framework lives inside Apprentice of Gains.
Educational content only — not financial advice. Trading involves substantial risk of loss and is not suitable for every investor. Figures shown are illustrative models, not predictions or guarantees. © 2026 School of Gains.