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📈 Size Trades From Risk Per Unit A promising setup can still expose too much of your account if you choose the trade size without checking the potential loss. Position sizing controls how much capital a single losing trade can put at risk, however attractive the opportunity looks. The key link is risk per unit: the same number of shares can carry different risk when the distance between entry and stop changes. Van Tharp’s CPR formula makes that relationship explicit: position size = capital at risk / risk per unit For example, if you choose to risk 1% of a $100,000 account, your risk budget is $1,000. With a stock stop $10 below entry, the risk per share is $10, so the formula gives 100 shares; the 1% is an illustration, not a recommendation for every trader. Before placing the trade, check both your current account equity and the risk per unit. If you use a fixed percentage risk budget, recalculate the position size as equity changes so the planned risk remains aligned with your chosen percentage. ✅ Trade on WEEX 💸

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