Portfolio sizing and daily limits
Live session companion: portfolio management, sizing, and risk - trade frequency, daily risk limits, position sizing, and risk per trade.
Why this matters
- Blow-ups come from bad sizing, not bad ideas.
- Position size ≠ risk. Your stop defines real risk.
- Cap frequency to protect daily P/L (and your head).
$10k account - quick playbook
- Max 4-5 trades/day. Stop after 2 big losses; reset for tomorrow.
- Core size: $750-$1,000 per trade (about 7.5-10% of portfolio).
- Risk shots: $250-$500 per trade (about 2.5-5%) for higher-risk ideas.
- Target 2-3R on winners (+50-75% typical take-profit range for many option-style plays - adjust to your product).
Make it yours - check your rules
- I will take no more than 4-5 trades per day.
- If I take two big losses, I am done for the day.
- My core position size is $_____ (_____%).
- My risk-shot size is $_____ (_____%).
- My typical stop range is -%.
- My target per trade is _____ R (_____%).
- Optional: My daily loss cap is _____% of portfolio.
Risk per trade - $1k size examples
If your position is about $1,000, the table below shows portfolio risk for different stop loss % on the position (not on the whole account).
| Stop loss (%) | Risk as % of portfolio | Dollars at risk (on $1k size) |
|---|---|---|
| 5 | 0.50% | $50 |
| 10 | 1.00% | $100 |
| 15 | 1.50% | $150 |
| 25 | 2.50% | $250 |
Daily risk if every trade hits stop
| Scenario | Per-trade risk (% of port.) | Trades | Worst-case day loss |
|---|---|---|---|
| Tight stops | 1.0% | 4 | ≈ 4% |
| Tight stops | 1.0% | 5 | ≈ 5% |
| Loose stops | 2.5% | 4 | ≈ 10% |
| Loose stops | 2.5% | 5 | ≈ 12.5% |
Execution rules (simple + enforceable)
- Enter near your stop - tight invalidation keeps losses small.
- Cut fast when thesis breaks; do not average down.
- Scale out into strength; let winners work up to 2-3R.
- No revenge trades - you do not get back losses by sizing up.