Stock Profit & Loss Calculator
The difference between a trader and a gambler is Risk Management. Use this tool to determine exactly how many shares you should buy based on your account size and stop loss.
Smart Sizing
Automatically calculate recommended shares to trade based on your risk tolerance.
Live Integration
Fetch current market prices directly to simplify your entry planning.
ROI Projection
See your potential returns and total exit value before you take the trade.
Related Keywords
Stock Profit & Loss Calculator
Account & Investment
Calculation Results
Enter your account details and trade parameters to see the recommended position size and P&L breakdown.
The Golden Rule: Never Over-leverage
How It Works
Risk management is the process of identifying, analyzing and either accepting or mitigating uncertainty in investment decisions. In trading, the most important part of risk management is **Position Sizing**.
Instead of guessing how many shares to buy, professional traders calculate their size so that if their stop loss is hit, they only lose a specific percentage of their account (usually 1% or 2%).
Formula Used
1. Risk Amount = Account Balance × Risk Percentage
2. Risk per Share = |Entry Price - Stop Loss Price|
3. Position Size = Risk Amount / Risk per Share
4. Reward Potential = Position Size × |Take Profit - Entry|
5. Risk/Reward Ratio = Potential Reward / Potential Risk
Common Trading Mistakes
❌ Revenge Trading
Doubling your position size after a loss to "make it back" is the fastest way to blow an account. Stick to the calculations.
❌ Emotional Exits
Moving your stop loss further away in hopes of a bounce usually leads to catastrophic losses. Respect your original plan.