Decide the maximum percentage of capital you are willing to lose on a single trade — commonly 0.5% to 1% for beginners.
Your stop distance then determines quantity: risk amount divided by the per-share stop distance.
This makes losses uniform and survivable, which is what keeps you in the game long enough for a method to show its expectancy.
Cap total open exposure as well, so five correlated trades do not become one large bet.
Want to apply this to your own plan?
Book a free consultation at our Giridih office and we will work through it with your actual numbers and goals.
This article is educational content and not investment advice. Markets carry risk; past performance does not guarantee future results.