📏
Lesson 2 of 2
Position Sizing
How much to bet
Never risk more than you can afford to lose.
A simple rule: Don't put more than 5-10% of your portfolio in any single stock.
Example with $10,000:
- Max per stock: $500-$1,000
- You'd own 10-20 different stocks
This way, even if one stock goes to zero, you only lose 5-10% of your total.
Paper trading is the perfect place to practice this!