IndiaNifty 5023,431.50▼ -0.86%
IndiaBSE Sensex74,764.23▼ -1.08%
IndiaNifty Bank56,295.55▼ -0.85%
IndiaNifty IT28,914.00▼ -3.24%
IndiaNifty Auto27,653.35▲ 0.00%
IndiaNifty Pharma26,691.80▼ -0.70%
IndiaNifty FMCG45,309.25▲ 0.00%
USS&P 5007,636.36▼ -0.48%
USDow Jones52,380.66▼ -0.77%
USNASDAQ26,253.34▼ -0.64%
UKFTSE 10010,670.10▼ -1.31%
JapanNikkei 22564,597.46▼ -0.84%
Hong KongHang Seng24,937.01▼ -1.34%
GermanyDAX25,576.45▼ -1.66%
FranceCAC 408,156.67▼ -1.94%
AustraliaASX 2008,779.80▼ -1.48%
IndiaNifty 5023,431.50▼ -0.86%
IndiaBSE Sensex74,764.23▼ -1.08%
IndiaNifty Bank56,295.55▼ -0.85%
IndiaNifty IT28,914.00▼ -3.24%
IndiaNifty Auto27,653.35▲ 0.00%
IndiaNifty Pharma26,691.80▼ -0.70%
IndiaNifty FMCG45,309.25▲ 0.00%
USS&P 5007,636.36▼ -0.48%
USDow Jones52,380.66▼ -0.77%
USNASDAQ26,253.34▼ -0.64%
UKFTSE 10010,670.10▼ -1.31%
JapanNikkei 22564,597.46▼ -0.84%
Hong KongHang Seng24,937.01▼ -1.34%
GermanyDAX25,576.45▼ -1.66%
FranceCAC 408,156.67▼ -1.94%
AustraliaASX 2008,779.80▼ -1.48%
Invest and Educate
Advanced Fundamental
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Position Sizing & Risk Management Framework

10 min read·Educational · Not investment advice

The 2% Rule

Never risk more than 2% of portfolio equity on a single trade. Even 10 losing trades in a row = only 20% drawdown.

Position Size Formula

Position size = (Account × Risk %) / (Entry − Stop)

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