ZenTraderFree tool
How many shares to buy
Decide what a losing trade may cost you, set your stop, and buy the number of shares that makes the two agree.
- Shares to buy
- 166
- Position value
- ₹83,000
- Lost if stopped
- ₹4,980
Buy 166 shares at ₹500.00 with the stop at ₹470.00, 6.0% below. If the stop is hit you lose ₹4,980, 1.00% of the account, before charges and any gap past the stop.
| Risk budget | ₹5,000 |
|---|---|
| Risk per share | ₹30.00 |
| Position, share of account | 16.6% |
| Positions this size the account can hold | 6 |
Why size from the stop
Buying a round number of shares, or a fixed rupee amount, makes every trade risk something different. With the same rupees in each, a stock with a stop 12% away loses four times as much as one with a stop 3% away.
Sizing from the stop turns every trade into the same bet, one unit of risk, often called 1R. A win is then measured in R too. A trade that makes three times what it risked is a 3R win, whatever the stock or the price.
That is what makes a trading record readable, and what lets you work out whether your rules have an edge. Read the guide to position sizing, or see what a given win rate and payoff do over many trades in the strategy odds simulator.
Common questions
How do I calculate position size from a stop loss?
Shares = (account size × risk per trade) ÷ (entry price − stop price). With a ₹5 lakh account, 1% risk (₹5,000), an entry at ₹500 and a stop at ₹470, the risk per share is ₹30, so you buy 166 shares, about ₹83,000 of stock.
How much should I risk per trade?
There is no single right number. Many swing traders risk between 0.25% and 1% of the account on each trade. At 1%, ten losses in a row cost under 10% of the account. At 5% they cost 40%, which then needs a 67% gain to recover.
What is ATR-based position sizing?
You set the stop a multiple of the stock's average true range (ATR), its typical daily move, below the entry. Jumpy stocks get wider stops and smaller positions, and quiet stocks get tighter stops and larger positions, while every trade still risks the same amount.
What does 1R mean in trading?
1R is the amount you risk on a trade, which is what you lose if the stop is hit. Measuring results in R lets you compare trades of any size. A trade that makes three times what it risked is a 3R win.