Figure out if a trade is worth taking — before you risk a single dollar.
| Stop is This Far From Entry | $ Risk | Shares @$50 | Shares @$100 | Shares @$200 | Shares @$500 |
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If you risk 1.0% per trade and hit a 10-trade losing streak — which will happen at some point — you only lose 10.0% of your account total. You're still in the game. Risk too much and one bad week can end you.