Last week, we taught you how to use the Stock Analyzer. This tool is a great starting point for when you’re researching a new stock to buy.

There’s another tool that takes the Stock Analyzer to the next step. The Position Size Calculator can help you decide how many shares to buy based on your risk tolerance.

Accessing the Position Size Calculator

The Position Size Calculator can be found in the Research tab of TradeStops. In the top black menu bar, click Research, and then click Position Size.

Click Position Size Calculator
There are three sections to fill out when analyzing a stock for its risk. We’ll go over each section individually to make it easy for you.

Pick a Stock

At the top of the Position Size Calculator, there’s an area to enter a stock. Simply type the ticker symbol. The Entry Price will then auto-fill for you.

Enter a ticker symbol

Please note that the Entry Price is the most recent final Closing Price for the stock. We update the Closing Price around 8pm Eastern each day.

Choose How Much Money You Want to Risk

In the second section, you get to have some fun. You get to tell the Position Size Calculator how much you want to risk with your new stock.

First, make sure that Risk is selected. There should be a green circle to the left of the word “Risk.” If the circle is white, just click the white circle.

Pick Risk Amount
You can choose from three predetermined options, or you can choose a custom level of risk.

If you want a custom level of risk, just click the Custom option. Another box will appear where you can type how much you want to risk.

Custom Dollar Risk

You don’t have to type the currency symbol. We’ll do that for you. All you have to do is type the number.

Pick a Stop Loss Strategy

Once you choose your risk tolerance, you get to pick a stop loss strategy. There are four options.

Stop Loss Strategy

  • The VQ% is the volatility quotient trailing stop. Remember, this custom trailing stop is based on how the stock has been performing historically. You can see what the VQ% stop would be below the VQ option. Check it out in the photo above.
  • The TS% lets you pick a trailing stop percent. If you click this option, you get to enter a percentage. Just like with the custom risk amount, you only need to type numbers. We’ll add the percent sign for you.
  • Stop Price lets you pick a fixed price of when to be stopped out. Once again, you only need to type the numbers. We make it easy for you!
  • The SSI Stop Price will stop you out based on our SSI algorithm. If this option is grayed out, it means the stock you’re researching is stopped out. In the photo above, the SSI option is available. It means the stock hasn’t been stopped out.

Let’s Review the Results

Once you have completed these three sections, click the green Calculate button. Then, the results will display for you along with an explanation.

Risk Assessment Results

Based on your selections, we display how much you could invest in the new position and how many shares you would buy. We also tell you the stop price. You can read a further explanation about this investable amount, shares, and stop price below.

Have Questions?

We’ve covered a lot of information here. If you have questions about your results, you can email us at support@tradestops.com, send us a chat, or call us at 866-385-2076.

Please note that chat is only available Monday – Friday from 9AM – 5PM Eastern. Our chat agents are only able to answer basic questions. So… if you have complicated questions, please send us an email instead. This will better facilitate giving you the best answer possible with more attention to detail.

Check out the Position Size Calculator Today

The Position Size Calculator is a great place to go when you’re considering buying new stocks. It lets you customize how many shares to buy based on how much you’re willing to risk. Login today, and try working with the Position Size Calculator.

To your investing success,

Customer Success Team