: If you have a $10,000 account and risk 1% ($100), and you buy a stock at $50 with a stop-loss at $48 (a $2 risk per share), you should buy 50 shares ($100 ÷ $2). 2. Simple Budget-Based Approach
: The difference between your purchase price and your "exit" point if the stock drops (stop-loss). how to know how many shares to buy
Number of Shares=Account Risk ($)Entry Price−Stop-Loss PriceNumber of Shares equals the fraction with numerator Account Risk ($) and denominator Entry Price minus Stop-Loss Price end-fraction : If you have a $10,000 account and