If you’ve ever been guilty of just sticking in a stake level at £1 … or £5 … because you didn’t get around to calculating what it should be … then you need this fast, easy-to-use position size calculator.
This easy-to-use Excel spreadsheet allows you to enter three key pieces of information about your trade:
– the size of your trading bank
– your risk profile (i.e. whether you’re risking 1% or 2% per trade)
– and, the distance to your stop level.
It will then automatically calculate what your stake should be, and tell you exactly what your risk is on that trade.
That way, you’ll never be over-stretching yourself.
To be successful at trading, it’s vital to calculate your position size for each and every trade. So, as your account size grows, you can increase your stakes, and taking advantage of the phenomenal power of compounding.
If you’re staking too small, then you’re letting your trading fund languish.
Even worse … if you’re staking too big …
There’s no easier way to wipe out your account than by trading with stakes that are too high.
The Trader’s Bulletin position size calculator allows you to enter in your risk profile (it’s recommended that this should be between 1 and 2%), so you can always keep a tight grip on your finances.