Account Size
% account size
risk (max 2%)*
Planned risk
in account $
Planned risk
per share
Max number
of shares
X
1%
2%
3%
4%
5%
* > $5k, max 2%
< $5k, max 5%
=
÷
*Determined by method
=
Example:
$30,000
X
2%
=
$600
÷
$2.00
=
300