Position Sizing tells a trader how much stock to buy. Correctly sizing your positions is one of the most important areas of trading as it affects both diversification and money management.
Factors that determine the size of your position include -
1. the ratio of risk to reward for the trade
2. risk tolerance of the trader
3. trading account size
4. current market exposure
5. free equity
The following tool will let you accurately size your positions in an instant. Right click and download this position size calculator - position_size_calculator.zip