Hello lovely people
Good evening to all of you.
As a newbie trader, i am bit confused and perplexed with the idea of position sizing and ROI.
Can we please gather our thoughts and brainstorm through this thread as we discuss the popular position sizing concepts out there and how one must implement them for Intraday?
Would like to suggest you to read this module on Varsity
No of shares to buy = ( %risk * capital )/ R
%risk = % of risk per trade (1%,2%)
Capital = account capital
R = entry price - stop loss
So, position sizing = no of shares to buy * price of the share.
Thank you MightyBulls. That’s great (y)