How much to invest in growth stocks - Deepstash

How much to invest in growth stocks

How much to invest in growth stocks

Risk no more than 1% of the trading account on each stock trade. 

Let’s say that I am trading a $100,000 account. I will risk only 1% of my account, or $1,000. If I enter the stock at 100 and the 50-day moving average is at 95, that means that my risk is 5 points on the stock (100-95). In that case, I should only buy 200 shares of stock. If I buy 200 shares of stock, and the stock falls 5 points, I will have lost $1,000 or just 1% of my total account size.

The key to making a lot of money is not losing a lot of money in the process.

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vladimir

Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.

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