Question about this forum post. (https://tradethatswing.com/how-much-stock-to-buy-how-to-position-size-when-swing-trading-stocks/) If I use the first position sizing technique (fixed %) on a $10,000 account and risk 1% on a $15 stock and stop at $14.25 then I can only take 133 shares. If I use the same numbers for the fixed $ technique using the same stop (5%) with 4 stocks in the $10,000 portfolio each getting $2500 then I get 166 shares per stock and it coming to $125 risk. Which is above my 1%. So I ask why not just use the fixed % technique in the first place so I dont oversize and have to worry about that?
I would just but msty...you'll probably make more doing nothing than you will day trading... Especially with only 10k. There's no system or indicator strategy that can be profitable... If you're using stop losses then it's even worse imo becoming more gambling than trading.
The scenario was the one given ($10,000) in the article and the website is literally called "tradethatswing.com" so not day trading. You really are a special snowflake ain't you?
Well if your TA ability is limited to "support and resistance" & "moving averages" like most around here then good luck. By the way, true swing traders don't use stops.
thats not the point. you dont choose which number gets you close on this one trade and then decide how many stocks you want in your portfolio. is this even a real place?
So what is the point. You get to decide your possition sizing. You can either choose the number of stocks in your portfolio or the percentage of your account you want to risk. You also get to choose where your stops is and where to enter. It's your choice, you get to make the rules.
"This makes sense if you're using hard stops — but I don’t use them. So fixed % risk per trade kind of breaks down in that context. For non-stop strategies, I size based on volatility, beta exposure, or simple dollar allocation. The key is knowing your max portfolio drawdown tolerance rather than per-trade losses." Tight stops = strict risk control ✅ Limits downside ❌ Chopped out often (“death by a thousand cuts”) ❌ Miss big moves ❌ Emotional fatigue Solution: – Use wider stops + smaller size – Mental stops / hedging / options – Structure-based exits over strict price stops Fixed % risk per trade: ✔ Keeps risk consistent ❌ Uneven capital per trade Fixed $ allocation (e.g. 4x $2.5K in $10K): ✔ Spreads capital ❌ Risk per trade varies if stop distance differs Many combine both: risk % + diversified capital to stay sized right without overexposing.
I go back and forth on position sizing. I remind myself to consider the volatility of the underlying. I try to keep it less than 5% of...something... My Net Worth, my Portfolio... 5% of something...