FoundationsMAD Academy0:46Risk

Size Is the Decision, Not the Entry

Position size is what turns a stop distance into a fixed, known risk — and it is the only variable you fully control.

0:46 · 6 scenes

This lesson is part of a MAD Academy plan.

What the Lesson Covers

  1. 0:00You cannot control whether a trade works. You can control what it costs.
  2. 0:05The calculation. Decide what you will risk, divide by the distance to the stop, and that is the size.
  3. 0:14Why the size varies. A wider stop means fewer shares. The dollars at risk stay identical.
  4. 0:24The mistake. Fixing the share count instead means every trade risks a different amount.
  5. 0:33The order it forces. Stop first, then size. Reversing that is how accounts get hurt.
  6. 0:41Fix the risk, and let the size be whatever it has to be.
MAD AcademyYou hold No active plan

This section is part of MAD Academy

The whole course, with live boards to practice on. Learn the market properly.

What Academy includes

  • Every training video the plan opens, all 305 lessons across 20 subjects
  • A Start Here path for newcomers, and every subject's lessons in order from Foundations to Advanced
  • Your progress, your trophies and your next lesson, tracked on your own Academy home
  • Every concept guide, all 24 trading set-ups and the 151-term glossary
  • The real-time Market Dashboard, Premium Scanner and Pro Charting, on the same feed every member plan reads
  • Heatmap and sectors, inside the member platform with your lessons rather than beside it
  • Unlimited watchlists, in the drawer on every tab and on the scanner and chart
  • The real-time Market News Feed, narrowed to your own watchlist in one click

Not included

  • No premium alerts, MAD Setups, alert archive or performance record
  • No personalized dashboard: My Dashboard starts at Analysis Tools Only
  • No research desk: Corporate Events and Institutional Ownership start at Analysis Tools Only
  • No product tutorials or Deep-Dives, which come with Premium Membership
  • No MCP Connector: connecting an AI app starts at Analysis Tools Only

Add MAD Academy

$39per month

or $279 per year (about $23.25 a month)

Start MAD AcademyPay yearly instead

Or get both

Premium Membership

$0for 5 days

then $149 per month, or $1,099 per year. Tools and Alerts together cost $188 a month bought separately.

Start 5 days free

Card required. After 5 days it is $149 per month or $1,099 per year until you cancel. First-time members only.

Compare every plan on the pricing page
Educational content only. MadStockAlerts provides market commentary, research, and educational content. It is not personalized investment advice, and nothing here is a recommendation to buy or sell any security. Trading and investing involve substantial risk, including loss of capital. See the Risk Disclosure and Customer Agreement.
Educational content only. MadStockAlerts provides market commentary, research, and educational content. It is not personalized investment advice, and nothing here is a recommendation to buy or sell any security. Trading and investing involve substantial risk, including loss of capital. See the Risk Disclosure and Customer Agreement.
Size Is the Decision, Not the Entry — MAD Academy Training Video · MadStockAlerts