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TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM
stopped out, would be $1,000, or 2 percent of $50,000. Here, we are using margin while
keeping the trade risk within 2 percent.
Using the Trade Size Calculator Software
You can certainly manually calculate your trade size as in the examples we just looked
at. But here is a case where it is easier and faster to use software for this purpose.
Look at Figure 11.1 to see an example of using the Trade Size Calculator software to
determine your trade size.
Trade Size Formula:
Risk Amount – Commission ÷ Difference between Entry and Stop = Trade Size
Example #3 of the Trade Size Formula – using the Trade Size Calculator:
$998.68 – $51.22 ÷ $1.26 = 753 shares
You can manually determine the proper trade size using the formulas in this chapter,
but as you can see it is quick and easy to use the calculator. This software is available
through TradersCoach.com® and you can email sales@traderscoach.com for
information on pricing. Or call 858-695-1985 in the USA.
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