Example : You buy a stock at $50 and plan to sell if it hits $45 (a $5 risk per share). With a $100 account risk, you would buy ($100 / $5). How Many Stocks Should I Own? - SoFi
Determining how many shares to buy depends on your , risk tolerance , and diversification goals . Most financial experts recommend focusing on the total dollar amount rather than the number of shares, as share price is arbitrary and does not reflect a company's total value. 1. Follow the "1% Rule" for Risk how many shares should i buy
: To find the exact number of shares to buy, use the Position Sizing Formula : Example : You buy a stock at $50