FoundationsStock Alerts + Tools0:46Risk
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 Stock Alerts + Tools plan.
What the lesson covers
- 0:00You cannot control whether a trade works. You can control what it costs.
- 0:05The calculation. Decide what you will risk, divide by the distance to the stop, and that is the size.
- 0:14Why the size varies. A wider stop means fewer shares. The dollars at risk stay identical.
- 0:24The mistake. Fixing the share count instead means every trade risks a different amount.
- 0:33The order it forces. Stop first, then size. Reversing that is how accounts get hurt.
- 0:41Fix the risk, and let the size be whatever it has to be.
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Upgrade to Premium MembershipEducational 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.