I have a 50,000 account and I use the formula on proper trade size as: Risk - Commission / Difference between entry and stop. Makes sense but then I was looking at trading some JNJ. Here's how it would come out. $500 - 4.95 commission / 0.47 (based on average ranges I am using) this gives me a trade size of 1053 shares. The problem with that is I would be buying ~$71k worth of stock :eek: It is a margin account but that's just for one position. How do you deal with this?