Trading Position Size & Risk/Reward
Max shares, $ risked, R:R ratio & potential profit at target.
Max Position Size
Reward-to-Risk
1 : 3.01R risk
$ Risked
$375
Potential Profit
$1,125
Position Value
$11,250
Never risk more than 1–2% per trade. Consistent 2R+ setups make winners out of 40% win rates.
Did you know?
Professional traders often aim for a 40% win rate — they profit because their average winner is 2–3× bigger than their average loser.
Formula
Shares = (Balance × Risk%) / |Entry − Stop| · R:R = (Target − Entry) / (Entry − Stop)
FAQs
What is 1:3 R:R?
Risking $1 to make $3 — you can be wrong 2 out of 3 times and still break even.