MONEY MANAGEMENT / SHARE SIZING

You will have to learn many things in your venture to becoming a successful trader. Once you are ready to trade real money, the most critical tool that you'll need to have at hand at all times, is how to calculate your entries and stop losses. Using this calculation is foundational in becoming a 10%er. It's one of hundreds of tools that you should have in your "Trading Toolbox." Every trade that you take should have a desired outcome (profit target) and a plan b (stop loss), if you are wrong. 

Below is the share sizing calculation for 1 (R) Risk Unit, or how to calculate how many shares you should use per trade, based on your pre-determined maximum loss per trade.